Apollo economist warns U.S. debt limits recession defenses

Apollo economist warns that the U.S. faces significant recession risks due to record-high debt, which has reached $39 trillion. Daily interest payments exceed $3 billion, consuming over 20% of tax revenues. The federal deficit has accelerated to $955 billion in just seven months, with projections suggesting it will surpass $1.9 trillion by fiscal 2026, raising concerns about long-term fiscal sustainability. Additionally, persistent inflation and high borrowing needs may limit the Federal Reserve's ability to cut rates and restrict government spending during a recession.