Rebecca Patterson warns of urgent need for US fiscal policy changes as debt tops $40 trillion

The US national debt crossed $40 trillion for the first time on August 18, 2026, landing at $40.047 trillion according to Treasury Department figures. That number climbed by roughly $60 billion in a single day. Rebecca Patterson, senior fellow at the Council on Foreign Relations and former chief investment strategist at Bridgewater Associates, appeared on Bloomberg’s “Bloomberg Money” on August 21 to make the case that Washington’s pattern of ignoring its fiscal situation is no longer a long-term problem. It’s a present one. How we got here The total has more than doubled since early 2017, when it stood near $19.95 trillion, and it has surged by roughly one-third in less than five years. The drivers are familiar: persistent federal deficits, spending on social programs and defense, interest costs that compound as rates stay elevated, and the lingering fiscal hangover from pandemic-era relief measures. Patterson’s concern isn’t just the headline number. It’s the trajectory. Without substantial policy changes, she warned, debt-to-GDP ratios could reach 118% or higher within the next decade. Why Patterson’s warning carries weight Patterson spent years as the chief investment strategis...