Deficit Surpasses $40 Trillion

THE BIG PICTURE

The federal debt has moved above $40 trillion. At the same time, the U.S. Treasury has doubled certain buybacks of

long-term Treasury bonds from $2 billion to $4 billion per operation. The buybacks may help calm the bond market,

but they do not erase the debt. The larger issue is that the government still needs to borrow very large amounts while

interest costs keep rising.


THE BIG PICTURE The federal debt has moved above $40 trillion. At the same time, the U.S. Treasury has doubled certain buybacks of long-term Treasury bonds from $2 billion to $4 billion per operation. The buybacks may help calm the bond market, but they do not erase the debt. The larger issue is that the government still needs to borrow very large amounts while interest costs keep rising