Treasury Secretary Scott Bessent signals the deficit may have peaked under Trump, despite July’s record-breaking $432 billion shortfall and a $1.8 trillion fiscal year deficit so far—pushing national debt past $40 trillion. He attributes the spike to accounting shifts, like delayed benefit payments and tariff refunds from court rulings, while hinting at a major fiscal consolidation push led by Trump, Vought, and Vance, potentially saving hundreds of billions. The Treasury’s expanded bond-buyback program cooled long-term yields, but pressure remains—with projected borrowing over $2 trillion this year and interest payments already exceeding $1.17 trillion.
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