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Story summary
- U.S. President Donald Trump said higher inflation could quickly cut the $40 trillion debt.
- Treasury Secretary Scott Bessent supported using inflation and growth to lower the debt.
- The White House suggested directing tariffs and visa fees toward debt reduction.
- U.S. debt-to-GDP ratio now exceeds 120%, raising borrowing risk premiums.
- Fed Chairman Kevin Warsh warned the central bank will not tolerate inflation above 2%.