The Federal Reserve reports Record domestic debt of $18.59T in the third quarter
Labor Secretary Lori Chavez-Deremer joins ‘Morning Maria’ to discuss how the government shutdown is hurting American workers, derailing efforts to regulate essential vehicles and rushing the Department of Labor’s efforts.
America’s Debt Burden Increases to the Highest Level on Record in the Third Quarter of 2025, According to a New Report by Jehovah’s Witnesses The Federal Reserve Bank of New York.
The New York Fed’s microeconomic data center released its quarterly report Debt and credit This week, it showed that the domestic debt increased by $ 197 billion in the third quarter to a record of $ 18.59 trillion.
Credit card balances rose $137 billion in the quarter to $13.07 trillion at the end of September, while credit card balances rose $1.23 trillion at the end of the quarter. Auto loan ratings were steady at $1.66 trillion, while student loan ratings rose $15 billion to $1.65 trillion.
“Household Debt Ratios are increasing at a moderate pace, with inflation rates tightening,” said Denghoon Lee, an economic research adviser at the New York Fed. “Lower bond prices in the pink reflect the strength of the housing market, driven by ample home inventory and strong underwriting standards.”
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US debt levels reached a record $18.59 trillion in Q3, the New York Fed found. (Stock)
– To increase Delinquency rates It remains high in the third quarter of 2025, with 4,5% of outstanding debt in a certain category of scrutiny.
New York Fedd noted that the transition to the first test was combined with credit card Debt and student loans are increasing, while all other types of debt are decreasing.
The transition has been very profitable, defined as 90 days or more of delinquency, it was very stable for auto loans, credit cards and loans. Total credit flow in Serious Delinquency was 3.03% in the third quarter of 2025, from 1.68% in the same quarter last year.
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Household Credit Card Debt will grow by $24 billion in the third quarter of 2025. (Stephanie Keith/Bloomberg via Getty Images)
Payments have been made to the Federal Student loans It was not reported to the Credit Bureaus from the second quarter of 2020 to the fourth quarter of 2024, and the resumption of those reports caused student delinquencies to increase significantly in the first quarter of 2025.
The New York Fed found that in the third quarter of 2025, 9.4% of student loan consolidation reported as 90+ loans or in default, compared to 7.8% in the first quarter and 10.2% in the second quarter.
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Fed chair Jerome Powell said at the last policy meeting there are signs of a “suspended” economy. (Al Dragon/Bloomberg/Getty Images)
The Federal Reserve cut interest rates for the second consecutive meeting in October despite higher interest rates amid signs of A tax market that weakens.
Policymakers have warned that while economic growth is complete, there are signs that consumers are driving cash flow while wealthy households struggle.
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Federal Reserve Chairman Jerome Powell It said in the Press press conference after the decision to cut the rate that “boiled economy” and that “consumers at the bottom end fight and buy less and switch to inferior products, but people spend at the end of their income and wealth.”
Reuters contributed to this report.
