The U.S. national debt crossed $40 trillion for the first time this week, but Treasury Secretary Scott Bessent urged markets not to fret, saying the U.S. can « grow its way out of that ». The Treasury announced it would at least double its buyback operations for longer-dated securities from a maximum of $2 billion per operation to at least $4 billion to shore up liquidity in a bond market it describes as thinly traded and mispriced. The U.S. deficit is expected to land around 5.7% of GDP for calendar year 2025, according to Bessent, who attributes the inflated headline deficit to one-time tariff refunds and immediate expensing of investments in factories. The government now spends more than $1 trillion annually just servicing debt, and the Treasury Borrowing Advisory Committee warned of a $1.45 trillion funding shortfall in fiscal years 2027-28.
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