Trump: Economic Growth Will Resolve US Debt 'With Great Ease'

President Donald Trump said the US federal debt, which surpassed $40 trillion for the first time this week, will be resolved "with great ease" through current economic growth. Speaking before boarding Air Force One to South Carolina, Trump said the debt "has been a problem for 35 years" and that "the way to manage debt is through growth," adding, "We have never had growth like this. That growth will resolve the matter with great ease" Source: portafolioco.

Debt and growth

Trump acknowledged inheriting part of the debt but insisted the economy's performance would handle it. The US economy grew at an annualized rate of 1.5% in April–June, with a stronger figure expected for the current quarter Source: infobae. However, sources note that the debt accelerated this year after the Supreme Court struck down tariffs that had been generating significant revenue for the administration Source: diariolibree.

Bond yields and Treasury

Asked about rising Treasury yields—the 30-year bond surpassed 5.3% this week, its highest since 2007—Trump denied ordering Treasury Secretary Scott Bessent to intervene via a bond buyback that slightly lowered yields. "No, absolutely not," Trump said, praising Bessent as "very capable" with "a natural talent" for bonds and interest rates Source: portafolioco.

Iran threat

Trump also appeared to issue a military threat toward Iran amid the prolonged war, saying, "There are many types of intervention; that is one of them. The definitive intervention is military, and if we have to resort to it, we will" Source: infobae.