US Treasury Secretary Says Budget Deficit May Have Passed Its Peak
Macro
Scott Bessent, the US Treasury Secretary, said there is a very high chance that the US budget deficit under President Donald Trump's administration has already passed its peak, and confirmed that the government will place great emphasis on fiscal consolidation. This comes after deficit and public debt figures surged to record highs. The monthly budget deficit in July exceeded 432 billion dollars, the highest level in more than five years, pushing the cumulative deficit since the start of the fiscal year to nearly 1.8 trillion dollars, higher than the same period a year earlier. Meanwhile, US government debt hit a new record of more than 40 trillion dollars, more than doubling over the past 10 years. Bessent said the government team is implementing fiscal consolidation measures that could save several hundred billion dollars, and views tariff revenue as an important tool for increasing government income and reducing the debt burden, even as it faces legal obstacles from a US Supreme Court ruling that struck down several tariffs earlier.
