US Total Debt Reaches $120.4 Trillion in Q2 2026, Driven by Federal Government Borrowing and Expanding Credit System

The Federal Reserve's new Z.1 Financial Accounts report reveals that the total debt securities and loans outstanding in the US financial system surged to approximately $120.4 trillion by the end of the second quarter of 2026. This represents a $2.2 trillion increase from Q1 and a $7.3 trillion rise over the past year, highlighting an economy supported by an enormous and continuously expanding stock of credit. Federal government debt is the largest component at $34.9 trillion.