This week’s chart examines debt levels over time across various sectors of the U.S. economy. Recently, there has been growing concern over the rising levels of federal debt, which now exceed the nation’s annual GDP. The current administration has proposed several initiatives to reduce public debt, including generating revenue through tariffs, implementing tax cuts, and improving government efficiency. On the other hand, the rise in government borrowing in recent years has coincided with deleveraging among households, corporate America, and municipalities. Whether potential tariffs might trigger a recession remains uncertain; however, the relatively healthy balance sheets of consumers and businesses provide reassurance that any potential U.S. recession may be relatively mild.