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US National Debt Hits $40 Trillion, Treasury Yields Rise, and US-Canada Trade Deal Progress - August 2026

EconomyWednesday, August 19, 2026

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  • The US national debt surpassed $40 trillion on August 19, 2026, setting a historic record and reflecting ongoing challenges in fiscal policy and government borrowing. This milestone poses risks for economic stability and complicates future policymaking regarding interest obligations and spending priorities.[The Washington Post][WKMG][WSJ]
  • Former President Trump intervened in the bond market amid the debt surge to influence interest rates and reassure investors, highlighting political involvement in managing economic stability and borrowing costs during a period of elevated debt.[WKMG][The Telegraph][The Telegraph][Al Jazeera]
  • Rising US Treasury yields are being driven by concerns over inflation, economic growth, and monetary policy shifts, affecting borrowing costs and potentially dampening economic expansion. The Treasury took surprise measures to ease these rising rates, including a debt buyback program doubled to stabilize bond markets amid inflation fears on August 19, 2026.[The New York Times][NBC News][The Guardian][The Economic Times][The Economic Times]
  • Trade relations between the US and Canada have improved following a new deal announced in August 2026, which averted the imposition of steep tariffs and is expected to bolster economic growth and strengthen North American trade ties.[CNBC][KTAR News 92.3 FM][Al Jazeera][CNBC]
  • Economic experts warn that the US is showing signs of an impending recession, identifying two key warning signals that suggest growing financial instability despite indicators of only a gradual economic slowdown, signaling mixed outlooks for 2026 economic performance.[Business Insider][Business Insider][Moomoo]
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