The Politics Behind the Rising U.S. Debt | 29 Aug 2026 | Thoughts on the Market | Morgan Stanley

1. Executive Briefing (TL;DR)

• Top Key Takeaways:

  • $40 Trillion Debt Threshold Breached: Total US national debt surpassed $40 trillion earlier than consensus expectations, amidst Treasury buyback announcements, reigniting focus on long-term fiscal stability [00:00:19].
  • Persistent Non-Recessionary Deficits: The US deficit is projected by Morgan Stanley economists to remain elevated at ~6% of GDP through 2027 despite the absence of a recession [].