JUST IN: 🇺🇸 TRUMP DROPS A MASSIVE DEBT STATEMENT
President Trump says “certain levels of inflation” could help pay down America’s $40 TRILLION national debt “very rapidly.”
The idea: inflation reduces the real value of existing fixed-rate debt, while stronger economic growth could also shrink the debt burden relative to the economy. But higher inflation can also push borrowing costs higher.
A huge macro signal for markets to watch.
President Trump says “certain levels of inflation” could help pay down America’s $40 TRILLION national debt “very rapidly.”
The idea: inflation reduces the real value of existing fixed-rate debt, while stronger economic growth could also shrink the debt burden relative to the economy. But higher inflation can also push borrowing costs higher.
A huge macro signal for markets to watch.
