Co-founder of Home Depot Issues Alarm Over America's Alarming Trillion-Dollar Debt Interest Amidst Market Warnings of Potential Turmoil
Headline: Homie D-pot Co-founder Ken Langone Slams 'Alarming' US Deficit, Calls for Balance in Global Trade
Ken Langone, the self-proclaimed "trade fan," isn't holding back when it comes to warning about the state of American markets and economy.
Langone sat down for an exclusive chat on 'Special Report' and raised the red flag on one particularly concerning factor that has him worried about the future.
"Listen, folks, I can't stress enough the importance of being mindful of our status on the global economy stage," Langone told Fox News' Bret Baier during the interview. "If we don't keep a check on this, we're toast."
He pointed to a frightening figure: the nation's crippling debt of around $36 trillion, which is projected to rise $1 trillion each year in interest alone.
"Just think about it - that's alarming," Langone explained.
The Dow Jones Industrial Average has taken notice, moving up over 20 points on Wednesday as investors wait for the Federal Reserve's decision this week on interest rates.
As of May 2025, U.S. national debt has increased by an average of 2% each year for the past five years, and now stands at approximately $106,000 per person[3]. By 2035, interest payments on the debt are projected to double, reaching a staggering $1.8 trillion[4].
Critics argue that persistent budget deficits and increasing interest costs pose significant risks to economic stability and fiscal health. Without policy changes to address these issues, the debt trajectory is expected to worsen, leading to increased economic risks[4].
Langone urged lawmakers to slow the spending spree and instead focus on promoting balance in global trade.
"Come on, Washington, let's get our house in order," Langone said. "As a nation, we need to work on improving global trade, not just relying on annual debt increases."
As the clock ticks towards the Fed's decision on Wednesday, investors, voters, and policymakers will be keeping a close eye on interest rates and the potential impact on the ever-growing national debt.
Sources: [1] CNBC, [2] MarketWatch, [3] Congressional Budget Office, [4] Committee for a Responsible Federal Budget
Additional Insights: Should the Fed decide to cut interest rates this week, it would mark the fifth time since the start of the COVID-19 pandemic that they've adjusted the budget. However, critics argue that further rate cuts could lead to inflation and reduced savings, ultimately hurting the economy in the long run. Many experts, including Jim Grant, the editor of Grant's Interest Rate Observer, claim that the Fed lacks self-awareness and fails to anticipate the unintended consequences of its actions. In recent years, the Fed's ability to both stimulate and stabilize the economy has been questioned, highlighting the need for appropriate policy changes to achieve sustainable fiscal health.
- The escalating US national debt, currently around $36 trillion and projected to rise $1 trillion yearly in interest alone, has Ken Langone deeply concerned about the state of the American economy and markets.
- Langone, a trade advocate, warns that unless lawmakers control spending and focus on balancing global trade, the nation could face dire consequences.
- The Dow Jones Industrial Average has shown some response, with a 20-point increase on Wednesday, in anticipation of the Federal Reserve's decision on interest rates this week.
- Economists argue that persistent budget deficits and increasing interest costs pose significant risks to economic stability and fiscal health, emphasizing the need for policy changes to address these issues.
- The debate over interest rate cuts continues, with some arguing that reduced rates could lead to inflation and reduced savings, creating potential long-term harm for the economy, while others criticize the Federal Reserve for lack of self-awareness and failure to anticipate the unintended consequences of their actions.
