The US most definitely has a debt problem.
In January, the Congressional Budget Office forecast that chronic federal deficits would add almost $22 trillion to America’s sovereign obligations over the next decade,
pushing net interest payments to 4.1% of gross domestic product in 2035, from 3.2% in 2025.
The obvious solution: Spend less, increase tax revenue or both
Treasury Secretary Scott Bessent has advocated a different approach: shifting issuance of government debt toward short-term bills.
If pursued aggressively, Bessent’s idea would signal a significant departure from the US practice of “regular and predictable” debt management.
The moment of truth might come on July 30, when the Treasury is set to announce its quarterly refunding plan.
It's hard to see how doing so would be worth the risk.
Bill Dudley Bloomberg 15 July 2025
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