US Reaches $40 Trillion Debt, Fed's Rate Surprise and Treasury Buy‑back: A New Tightening Wind in Markets

The US public debt has surpassed the $40 trillion 47 billion mark for the first time as of August 18, growing by $10 trillion in under five years, sparking global market unease.

Fed's Subtle Tactics: Rate Hike or Tightening?

The July meeting minutes suggest that if inflation continues to climb, the Fed may lift rates to 5.5%.

■Inflation targets remain around 2.3%.

■Some officials advocate an early 0.25% increase.

■Others emphasize keeping policy flexible amid slowdown risks.

Rising Wave of Treasury Buy‑backs

Scott Bessent’s new initiative has pushed long‑term Treasury yields from 4.5% to 3.8%, weakening the dollar.

■Buy‑back volume last week reached $20 billion.

■Investors noted increased liquidity in low‑yield bonds.

■The move caused a 0.6% dip in the US dollar.

Trump’s Economic Operation Against Tehran

President Donald Trump announced an unprecedented “economic operation” targeting Iran, threatening heavy consequences for its supporters.

■The operation involves $200 million worth of trade restrictions.

■European and Asian firms face tariff and sanction risks.

■This development could create short‑term volatility in Global Energy Markets.

Canada Trade Deal: A Fair Step?

Trump declared the new trade agreement with Canada to be “fairly balanced.”

■The deal includes $15 million in tariff exemptions.

■An expected $120 million increase in bilateral exports.

■Positive reception noted by investors from Korea and Germany.

Gold and Crypto’s Ascending Trail

Gold edged above $1,950, while Bitcoin surpassed the $30,000 mark, gearing up for a third‑week gain.

Markets, reacting to Fed tightening signals and Treasury buy‑backs, appear poised to continue the safe‑haven rally in gold and crypto, signaling a critical period for portfolio rebalancing.