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With the federal deficit near 6% of GDP and the national debt over $40tn, America’s fiscal position looks increasingly precarious
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United States — Kenneth Rogoff
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 inevitable – is starting to cause real pain.
Until now, the Treasury secretary, Scott Bessent, has dismissed concerns about US debt, which recently surpassed $40tn , as a big nothingburger. Growth, in his telling, will be so spectacular the US will easily be able to meet its interest obligations without any significant tax rises or spending cuts, while the rest of the world will happily keep feeding it money. But if Bessent really believes that, why is he trying to strong-arm the bond market by fiddling with the maturity structure of government debt?
Bessent ‘will lose’ battle with bond markets, ex-mentor warns
This report is published with credit to The Guardian. Full available text from the wire is above. Read on The Guardian →
Source: The Guardian · Kenneth Rogoff. Published 26 Aug 2026, 05:00 am.
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