Is the Trump Treasury panicking over the level of US debt?
With the federal deficit near 6% of GDP and the national debt over $40tn, America’s fiscal position looks increasingly precarious Bessent ‘will lose’ battle with bond markets, ex-mentor warns Are we seeing the first signs of panic in Donald Trump’s Treasury? The US is by far the world’s biggest debtor, and the steady rise in global long-term interest rates – which I have long argued was…
The US federal deficit has reached a concerning 6% of GDP, while the national debt has skyrocketed over $40tn. This has raised questions about the health of America's fiscal position. An ex-mentor of Scott Bessent, the Treasury Secretary, warns that Bessent is likely to "lose" his battle with the bond markets. Interest rates globally have been steadily climbing, and this trend may be causing significant financial strain on the United States.
Despite dismissing these concerns earlier, Bessent appears to be adopting a more cautious approach. He is reportedly attempting to manipulate the maturity structure of government debt, which appears to be a sign of panic within the Treasury. The US remains the world's largest debtor nation, and the increasing global long-term interest rates are starting to have real consequences.
Bessent's previous assurances that the US economy would continue to grow spectacularly and comfortably meet its interest obligations seem to be faltering. This development raises serious questions about the management of the nation's debt and the potential for a financial crisis.
Written by urgent.news from The Guardian US's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Is the Trump Treasury panicking over the level of US debt? theguardian.com
