Interest on US federal debt has never been higher: In the first 6 months of Fiscal Year 2025, interest expense jumped +7% YoY, to $623 billion, the highest for this period in history. This is even higher than during the massive pandemic response in 2021, when the budget deficit was at $1.7 trillion. Over the last 12 months, gross interest expense is running at a record $1.3 trillion. As a result, interest is now the 2nd-largest spending category, only behind Social Security at $1.6 trillion. Interest expenditures are $300 billion larger than health spending and $400 billion larger than defense spending. The US debt crisis is in full swing.(The Kobeissi Letter)