**[FT: Economic Pressure in the Trump Era, Oil Prices and Mortgage Rates Rise in Tandem, U.S. Debt Surpasses $40 Trillion]** BlockBeats News, August 22: The *Financial Times* published an article stating that the Trump administration's economic policies are facing multiple pressures: U.S. federal debt has surpassed $40 trillion, long-term Treasury yields have risen to a 19-year high, the Iran war has driven up energy prices, and mortgage rates continue to climb. This week, the U.S. long-term Treasury market experienced significant volatility. Investors, concerned about the expanding scale of government borrowing and inflation risks brought by the war, pushed long-term Treasury yields higher. U.S. Treasury Secretary Besent subsequently announced an expansion of the long-term Treasury buyback program and plans to introduce measures to reduce the fiscal deficit, but market reactions were limited, and the dollar weakened instead. Data shows that the scale of U.S. government debt surpassed $40 trillion for the first time this week, with federal spending growing at the fastest pace since the pandemic. For the 2025 fiscal year, the U.S. fiscal deficit as a percentage of GDP is expected to decline only slightly to 5.8%, while Trump's tax cuts are projected to further increase fiscal pressure in the future. In the energy sector, the U.S.-Iran conflict has driven up fuel prices. Gasoline prices have risen about 40% from pre-war levels, reaching $4.11 per gallon, while diesel prices have climbed to $5.58 per gallon. Rising energy costs have undermined Trump's previous policy goals of reducing living costs and energy prices. The housing market is also under pressure, with the U.S. 30-year mortgage rate rising to 6.65%, up from 5.98% before the war. Meanwhile, U.S. consumer inflation in May reached a three-year high of 4.2% before easing to 3.4% in July, but Federal Reserve officials remain concerned about persistent inflationary pressures. Although the U.S. economy is still supported by consumer spending and large tech companies' investments in AI infrastructure, the growth rate is falling short of the government's previous targets. By the second quarter of 2026, the annualized U.S. GDP growth rate is expected to be around 1.5%, below the previously projected growth rate of over 3%. Market analysts believe that high debt, high financing costs, and rising energy prices are eroding consumer confidence and could become significant political pressures for the Trump administration. Besent, however, stated that the U.S. still has the potential to improve its fiscal situation through economic growth. [Original Link]