🚨 JUST IN: 🇺🇸 President Trump says “certain levels of inflation” could pay down the $40 TRILLION U.S. national debt “very rapidly.”
The idea: inflation can reduce the real value of existing fixed-rate government debt.
But there’s a major catch.
Higher inflation can push Treasury yields higher, increasing the cost of refinancing and servicing new debt.
With U.S. debt already above $40 trillion and bond yields elevated, markets are watching this closely.
#Trump #Inflation #USDebt #Treasury #Markets
The idea: inflation can reduce the real value of existing fixed-rate government debt.
But there’s a major catch.
Higher inflation can push Treasury yields higher, increasing the cost of refinancing and servicing new debt.
With U.S. debt already above $40 trillion and bond yields elevated, markets are watching this closely.
#Trump #Inflation #USDebt #Treasury #Markets
