The Treasury Secretary during President Trump’s first term is outlining a critical solution for America’s ballooning national debt.
In a new interview with Goldman Sachs CEO David Solomon, Steve Mnuchin says he’s very concerned about the country’s budget deficits.
Data from the Congressional Budget Office (CBO) shows that the government is poised to run a $1.9 trillion budget deficit this year and average $2.4 trillion annually from 2027 through 2036.
According to Mnuchin, strong economic growth is crucial to protect the fiscal sustainability of the US.
“So now we’ve ended up with debt-to-GDP at 125%. Neither one of the parties really seems willing to make major cuts. And even when you see things like healthcare costs being cut, you see the political backlash. I think the only way we can get out of this and I think the administration’s goal is to grow the economy at 3% plus. If we don’t do that, and we have slower growth, this debt-to-GDP ratio will become problematic.”
Billionaire “Bond King” Jeffrey Gundlach recently urged investors to rotate capital into non-US assets and equities, noting that America’s fiscal path of taking on more debt each year is unsustainable.
Data from the Treasury Department shows that the country’s national debt now stands at more than $39 trillion.
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