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● TRACKER Updated 19d ago · 9 sources tracked

The $40 trillion national debt and the bond market's revolt: top Wall Street strategists explain how we got into this mess

The United States national debt has crossed the $40 trillion threshold, doubling during the Trump and Biden administrations. This surge has triggered volatility in the bond market and increased pressure on mortgage payments. While some economists are now expressing panic over the spending bill, Bessent suggests there is a "very good chance" the budget deficit under Trump has peaked. Current instability is affecting the viability of Trump's plan to raise the borrowing limit as Treasury markets face a difficult summer both domestically and abroad.

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⚡ Key Developments & Real-Time Context
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  • ✓ The US national debt has crossed the $40 trillion threshold.
  • ✓ US debt doubled during the Trump and Biden administrations.
🛡️ Source Corroboration: 9 independent reporting domains (90% confidence) ⏱ Read time: ~2 min

What changed

US national debt has officially exceeded $40 trillion.

Live updates

  1. US National Debt Surpasses $40 Trillion

    The United States national debt has crossed the $40 trillion threshold, doubling during the Trump and Biden administrations. This surge has triggered volatility in the bond market and increased pressure on mortgage payments. While some economists are now expressing panic over the spending bill, Bessent suggests there is a "very good chance" the budget deficit under Trump has peaked. Current instability is affecting the viability of Trump's plan to raise the borrowing limit as Treasury markets face a difficult summer both domestically and abroad.

    Why it matters

    The national debt represents the total amount of money the US government owes to creditors. When the bond market revolts against high debt levels, it typically drives up interest rates for consumers and government borrowing. This creates a cycle where debt servicing costs consume a larger portion of the federal budget.

    What is confirmed

    • The US national debt has crossed the $40 trillion threshold.
    • US debt doubled during the Trump and Biden administrations.

    Still unconfirmed

    • Economists who previously ignored the debt are now panicking.

    What to watch next

    • Legislative action on the borrowing limit
    • Official budget deficit reports for the current quarter
    • Changes in Treasury bond yields
    Sources used for this update (10)
    1. Reuters — US debt crosses $40 trillion threshold after doubling under Trump and Biden
    2. CNBC — Bessent says there's a 'very good chance' U.S. budget deficit under Trump has peaked
    3. The Washington Post — As debt surpasses $40 trillion, the bill for Washington spending comes due
    4. The New York Times — Opinion | $40 Trillion Debt? The Ancient Sumerians Wouldn’t Have Cared.
    5. CNN — The national debt just hit $40 trillion. But how much is $40 trillion? | CNN Business
    6. Fortune — The $40 trillion national debt and the bond market's revolt: top Wall Street strategists explain how we got into this mess
    7. The Hill — Trump plan to raise borrowing limit on shaky ground as debt roils bond market
    8. The Atlantic — Economists Who Weren’t Worried About the Debt Are Now Panicking
    9. WSJ — Uncle Sam’s $40 Trillion Tab Is Living Rent-Free in Your Mortgage Payment
    10. WSJ — Think Treasurys Are Having a Rough Summer? It’s Even Uglier Abroad.
    confidence 90%
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