On Saturday, President Donald Trump downplayed worries about the United States’ debt crisis, which has now exceeded $40 trillion, by promoting a strategy centered on economic growth.
“It’s been an issue for 35 years, and what we have now that we’ve never had before… is tremendous growth — and the way to address debt is through growth,” Trump told reporters at Joint Base Andrews in Maryland. His comments followed the announcement that the monthly U.S. budget deficit hit $432 billion in July, the largest since March 2021.
The Department of the Treasury has not yet responded to requests for comments regarding this matter.
WATCH:
.@POTUS on the national debt: “It’s been a problem for 35 years and what we have now that we’ve never had before… is tremendous growth — and the way to take care of debt is with growth.” pic.twitter.com/J1WFPcJvcQ
— Rapid Response 47 (@RapidResponse47) August 21, 2026
U.S. Secretary of the Treasury Scott Bessent echoed a similar perspective after announcing that the government’s deficit had surpassed $40 trillion.
Bessent mentioned in a CNBC interview that there’s a “very good chance” that the deficit has peaked under the current administration, and he might consider increasing long-term bond buybacks to help improve market liquidity.
“There’s nothing inherently special about the 40-trillion figure,” Bessent stated. “We can grow our way out of this.”
However, some prominent figures on Wall Street, including Ray Dalio from Bridgewater Capital and Nathan Thooft of Manulife Investment Management, expressed skepticism regarding the administration’s approach.
Thooft cautioned that while the Treasury can influence market liquidity and public sentiment, it cannot sustainably counteract the realities of growth, inflation, deficits, and supply.
In light of these concerns, many investors seem to be turning toward gold and Bitcoin as the DXY index, which measures the U.S. dollar’s strength, fell by 2.43% over the past month.
“President Trump has committed to addressing President Biden’s fiscal mismanagement. That’s why the Trump administration is focusing on cutting waste, fraud, and abuse in government spending while promoting economic growth to improve America’s debt-to-GDP ratio,” stated White House spokesperson Kush Desai. “As the President’s supply-side economic policies aim to reduce inflation and lay the groundwork for interest rate reductions by the Fed, both the markets and everyday Americans can expect more relief ahead.”
Editor’s note: This report was updated to include a statement from the White House.
