Scott Bessent says the U.S. budget deficit has likely peaked as national debt exceeds $40 trillion

Treasury Secretary Scott Bessent stated that the U.S. budget deficit has likely reached its peak. This assessment comes as the U.S. government debt surpassed the $40 trillion milestone for the first time, a record-breaking figure that grew by $1 trillion in less than half a year. The administration announced that the debt pile reached this record as government spending continues to exceed tax revenues. While the debt has grown significantly under both the first and second terms of President Trump, Scott Bessent noted that federal leaders are working on fiscal consolidation measures to save hundreds of billions of dollars. Bessent emphasized that the country can grow its way out of the debt. He also highlighted that broad tariffs on trading partners are expected to be a primary driver of revenue to help shrink the national debt, with this year's revenue expected to remain steady despite previous legal challenges.

Sources

• Financial Times
  Trump’s economic challenge: $40tn debt, 6.7% mortgages and $5 diesel
• The Washington Post
  After decades of free spending, Washington is facing some unpalatable choices
• The New York Times
  Opinion | An Ancient Sumerian Solution to Our $40 Trillion Deficit
• The Hill
  Vance: Bessent has ‘very discreet plan’ to shrink $40 trillion national debt
• CNBC
  Bessent says there's a 'very good chance' U.S. budget deficit under Trump has peaked