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Trump Urges Fed Bond Purchases Amid 120% Debt Crisis

5/25/2026

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Summary

Story summary

U.S. President Donald Trump is considering pressuring the Federal Reserve (Fed) to purchase Treasury bonds to keep interest rates low.
Analysts warn that short-term spending and a federal debt over 120 % of GDP create a looming financial crisis.
Economist Maurice Obstfeld says only a fiscal regime change in Congress can avert disaster, while China’s export surplus continues to finance U.S. deficits despite little willingness to adjust spending.

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Story summary

U.S. President Donald Trump is considering pressuring the Federal Reserve (Fed) to purchase Treasury bonds to keep interest rates low.
Analysts warn that short-term spending and a federal debt over 120 % of GDP create a looming financial crisis.
Economist Maurice Obstfeld says only a fiscal regime change in Congress can avert disaster, while China’s export surplus continues to finance U.S. deficits despite little willingness to adjust spending.