US debt hits $40 trillion: Who does Washington owe and why does it matter?

The total debt of the United States has surpassed $40 trillion for the first time in history, according to a Department of the Treasury update on Wednesday.

Ballooning debt, especially during President Donald Trump’s second term, which began in January last year, has been raising concerns about a looming fiscal crisis for some time, with economists fearing a toxic combination of heavy borrowing,...