The U.S. national debt has surged past $36 trillion, raising alarms about fiscal sustainability. Treasury Secretary Janet Yellen recently acknowledged the severity of the issue, stating, “I am concerned about fiscal sustainability and I am sorry that we haven’t made more progress. I believe that the deficit needs to be brought down, especially now that we’re in an environment of higher interest rates.”
Under the Biden administration, government spending, including $3 trillion in economic stimulus, contributed to the debt increase. Yellen defended this approach, claiming, “The smartest thing we can do is act big,” but the resulting inflation and soaring interest expenses have surpassed defense and healthcare spending.
Incoming Treasury Secretary nominee Scott Bessent, appointed by President-elect Trump, is expected to focus on fiscal reforms, including reducing government spending and reforming entitlement programs.
The Trump administration faces the urgent task of stabilizing the economy and restoring fiscal responsibility.