Trump Says Inflation Could Help Pay Down the U.S. National Debt
He also pointed to economic growth, but did not specify an inflation level or outline a policy to reduce the debt.
President Donald Trump said inflation could help reduce the U.S. national debt, while also pointing to economic growth as a way to ease the burden without specifying a target or policy.
Trump made the remarks during a White House interview conducted Sept. 28 and published Oct. 1. “Certain levels of inflation will also pay off that debt very rapidly,” he said. He also said debt could be paid down through growth.
The Federal Reserve’s long-run inflation goal is 2% over time. The latest available Consumer Price Index data showed prices rose 3.4% over the 12 months through August 2026, before seasonal adjustment. The September CPI report was scheduled for release Oct. 14 at 8:30 a.m. ET (12:30 UTC).
Inflation can reduce the purchasing power of fixed payments on existing debt. It can also raise borrowing costs when the government issues or refinances debt. Trump did not address that trade-off in the interview.
Public debt outstanding totaled $39,283,052,266,270.91 as of June 17, 2026. Trump did not give a debt total during the interview.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.