Trump Suggests Inflation Can Pay Down National Debt
President Donald Trump has made a surprising statement on the US national debt, suggesting that inflation could help pay it down. During an interview at the White House, he said 'Certain levels of inflation will also pay off that debt very rapidly.' Trump also pointed to economic growth as another way to reduce the burden.
The Federal Reserve's long-run inflation goal is 2% over time, but current data shows prices rose 3.4% over the 12 months through August 2026. The September Consumer Price Index report was scheduled for release on October 14.
Trump did not address the trade-off that inflation can reduce the purchasing power of fixed payments on existing debt and raise borrowing costs when the government issues or refinances debt.
The public debt outstanding totaled $39,283,052,266,270.91 as of June 17, 2026.