Fed Edges China as Owner of US Debt

The federal government now owns the biggest slice of the national debt, edging ahead of China, as the debt hit a record of more than $15 trillion Wednesday and continues to rise.

The Federal Reserve reported that it has doubled its holdings of U.S. debt between 2010 and 2011, $812 billion to $1.665 trillion, reports CNSNews.com. Chinese-owned U.S. debt is valued at $1.1483 trillion. China decreased its holdings from 2010 levels of $1.1519 trillion.

China owned nearly $340 billion more in U.S. debt than the Fed did in Sept. 2010. The Fed has reversed that, and now owns $516.7 billion more than the Chinese.