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s/cryptohayesINFLATION DEBT•Oct 2
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Trump pitches higher inflation to pay down $40 trillion U.S. debt

Trump is pitching higher inflation as a way to pay down the roughly $40 trillion U.S. national debt “very rapidly,” while also pointing to economic growth as another route. The tension is that CPI and PCE inflation are already at 3.4%, well above the Federal Reserve’s 2% target. Treasury yields hit a new daily high after the statement, while annual federal interest payments are about $2 trillion.

Timeline2
Oct 2

Trump said inflation could pay off the national debt very rapidly.

Oct 2

Treasury yields reached a new high of the day after Trump’s statement.

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Oct 2
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