Treasury Secretary Scott Bessent states the U.S. national debt has reached a record $40 trillion while highlighting potential for growth.

The U.S. national debt has surpassed the $40 trillion milestone, a record high that has more than doubled in the last decade. Treasury Secretary Scott Bessent stated that while the figure is significant, the government can grow its way out of the debt. The administration announced the debt buyback and highlighted fiscal consolidation measures led by administration leaders to save hundreds of billions of dollars. Bessent noted that the budget deficit likely peaked under the administration, and the administration marketed broad tariffs as a primary revenue driver to shrink the debt. Although these tariffs faced legal hurdles, Bessent expects significant revenue to remain in the government's hands. The debt-to-GDP ratio is currently near a record high of 123%, placing the United States among the top 10 countries with the highest debt-to-GDP ratios globally. The national debt now exceeds the combined GDP of the other five largest economies in the world.

Sources

• Fortune
  Treasury's recent moves in the bond and currency markets add up to 'soft-form financial repression'
• The New York Times
  Opinion | An Ancient Sumerian Solution to Our $40 Trillion Deficit
• CNN
  The national debt just hit $40 trillion. But just how big is $40 trillion?
• The Washington Post
  After decades of free spending, Washington is facing some unpalatable choices
• CNBC
  Bessent says there's a 'very good chance' U.S. budget deficit under Trump has peaked