Bessent says 3% GDP growth can outpace $40 trillion US debt

September 9, 2026 at 04:00 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Treasury Secretary Scott Bessent said Tuesday the US can grow its way out of debt with 3% annual GDP growth. He said the country has a spending problem, not a revenue problem, and is working with OMB Director Russ Vought on a fiscal consolidation plan. The national debt recently surpassed $40 trillion, with the annual deficit projected to top $2 trillion by Sept. 30.

Key Facts

The US national debt recently surpassed $40 trillion, and the annual fiscal deficit is projected to top $2 trillion by Sept. 30.
Bessent said he is working with OMB Director Russ Vought on a fiscal consolidation plan to bring the deficit down.
Bessent said the Supreme Court's striking down of President Trump's 'Liberation Day' tariffs prevented the US from collecting $180 billion to pay down the deficit.
Bessent said the Treasury will do more long-term bond buybacks to liquefy the most liquid portion of the bond market.

Debt and Growth

Bessent said the US can grow its way out of debt if it achieves annual economic growth of 3%. He said the US has a spending problem, not a revenue problem, and that containing spending coupled with 3% growth would allow the country to grow its way out of the debt. The total US national debt recently surpassed $40 trillion, and the annual fiscal deficit is projected to top $2 trillion by the end of the fiscal year on Sept. 30.

Fiscal Consolidation Plan

Bessent said he has been working with OMB Director Russ Vought on a fiscal consolidation plan to bring the deficit down. He noted he would prefer not to rush the plan through a lame-duck Congress if Democrats take back one or both houses in the upcoming midterms. Bessent said that if the Supreme Court had not struck down President Trump's 'Liberation Day' tariffs, the US would have been collecting $180 billion to pay down the deficit.

Bond Buybacks and Energy

Bessent said the Treasury will do more long-term bond buybacks, taking the most liquid portion of the bond market and giving bond buyers money to buy more. He said current interest rates are the most correlated they have been with energy prices, and he thinks that correlation will break. Bessent said in a year or two the market will be oversupplied with oil, given the energy relationship the US is building with Venezuela and as things normalize in the Middle East.