President Donald Trump is dismissing worries about bond market volatility amid the U.S. debt milestone.
Total U.S. public debt outstanding reached $40.047 trillion on Tuesday, marking the first time it has crossed the $40 trillion mark, reports Reuters.
The Treasury Department said the total includes $32.266 trillion in securities held by the public and $7.782 trillion in intra-governmental holdings.
President Trump addressed the issue at the White House.
“I don’t think so at all. I think we have a very powerful country, and we’re powering through these ridiculous interest rates — they’re ridiculous. Look, when our country is strong, interest rates should go down.”
Budget groups warned of a brewing fiscal crisis.
Maya MacGuineas of the Committee for a Responsible Federal Budget noted that the massive national debt impacts everyone in the US.
“For perspective, it took nearly 200 years for America’s gross debt to reach $1 trillion for the first time in 1981. $40 trillion of debt doesn’t exist solely on the government’s ledgers; it is felt throughout the economy and finds its way to the pocketbooks of people one way or another. The more we borrow, the more we exacerbate inflation, squeeze out other priorities in the budget, and leave ourselves vulnerable to emergencies at home and turmoil abroad.”
The Treasury also announced doubled buybacks for long-term bonds to at least $4 billion per operation.
Debt has more than doubled from $19.95 trillion in January 2017, with increases of $11.6 trillion across two presidential terms and $8.4 trillion during the prior administration.
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