Everyone Is Running Up Debt Except America’s States and Cities
- Amount of muni debt owed drops for the fourth straight quarter
- Contrasts with rising debt of federal government, households
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America’s states and cities may be the only ones that aren’t running up their credit cards.
The outstanding debt of U.S. state and local governments shrank for the fourth straight quarter in the three months ended in June, dropping by $14.6 billion to about $3.8 trillion, according to Federal Reserve Board figures released Friday. That stands in contrast the federal government, households and businesses, all of which stepped up their borrowing.