Trump suggests US may have less debt than thought because of fraud
Published On Feb 10, 2025, 10:50 AM
Former President Trump suggested that the U.S. national debt might be smaller than reported due to potential fraud uncovered by his administration. He indicated that irregularities at the Treasury could lead to a reevaluation of the nearly $36 trillion in national debt. Economists, however, have expressed skepticism, stating that Trump's comments lack clarity, especially regarding what aspect of debt he referred to, and noted that the public debt is still a significant issue. This uncertainty led to minimal immediate market reaction, with greater focus on economic data and Federal Reserve interest rate policies instead.
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Trump's comments raise concerns about the validity of U.S. debt figures, which could indirectly impact investor confidence in U.S. Treasury securities and the broader market. Additionally, if his statements lead to further investigations or policy changes, it could add volatility to government bond markets. Investors should watch for reactions in Treasury yields and other financial instruments.
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