Trump Says Inflation Will Pay Off the $40 Trillion Debt 'Very Rapidly'

President Donald Trump told TIME in an interview published Thursday that "certain levels of inflation will also pay off that debt very rapidly," referring to the roughly $40 trillion national debt. The remark came after TIME noted the debt has grown by about $11 trillion over his five years in office. Trump first blamed Joe Biden, then the Fed, then hinted at an undisclosed plan. Earlier in the same interview, Trump blamed Biden for "the biggest inflation in history" while saying prices are "coming down rapidly." Headline CPI rose 3.4 percent in the 12 months through August, with core at 2.4 percent, per the Bureau of Labor Statistics, both above the Fed's 2 percent target. On September 16, the Fed raised rates for the first time since July 2023, a unanimous quarter-point hike to 3.75 to 4 percent. On Thursday, the 10-year Treasury yield touched 5.34 percent, its highest since 2002.