The United States national debt crossed the $40 trillion mark this week, according to Treasury Department data, marking a significant fiscal milestone. Treasury Secretary Scott Bessent addressed concerns in an exclusive interview on CNBC, emphasizing that the $40 trillion figure holds no special significance and expressing confidence that economic growth can manage the debt burden.
Bessent’s remarks came shortly after the Treasury announced it would at least double the size of its buyback operations for longer-dated securities, increasing from a maximum of $2 billion per operation to at least $4 billion. This move, effective from September 9 through November 4, targets the 10-to-20-year and 20-to-30-year Treasury sectors, which have experienced reduced demand since late June, leading to a thinly traded and mispriced bond market.
The Treasury’s expanded buyback program aims to improve liquidity and stabilize the bond market amid investor hesitancy. The gross national debt had reached $39 trillion just five months earlier in March, highlighting the rapid pace of borrowing. Bessent’s comments and policy adjustments seek to reassure markets and investors during a period of heightened fiscal scrutiny and economic uncertainty.
The Treasury’s enhanced buyback operations will cover the 10-to-20-year and 20-to-30-year sectors from September 9 to November 4, reflecting a strategic effort to support market functioning and address the ongoing "buyers’ strike" in longer-dated Treasurys, according to fortune.com.