With the federal deficit near 6% of GDP and the national debt surpassing $40 trillion, America’s fiscal position looks increasingly precarious. By trying to strong-arm the bond market rather than address the underlying problem, Treasury Secretary Scott Bessent may have squandered his hard-earned credibility.
https://prosyn.org/aTuiQj2
CAMBRIDGE—Are we seeing the first signs of panic in US President Donald Trump’s Treasury? The United States is by far the world’s biggest debtor, and the steady rise in global long-term interest rates—which I have long argued was inevitable—is starting to cause real pain.
Facts Only
* The federal deficit is near 6% of GDP.
* The national debt surpasses $40 trillion.
* Global long-term interest rates are rising.
* Rising interest rates are causing pain in the United States.
* The Treasury Secretary is Scott Bessent.
* Concerns are raised regarding attempts to strong-arm the bond market instead of addressing underlying problems.
