Is the Trump Treasury Panicking?¶
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.
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 havelong arguedwas inevitable—is starting to cause real pain.