Peter Schiff Warns US Debt Could Hit $40 Trillion by August End or 'Sooner:' 'Fed Will Crank Up the…'

Namrata Sen

Mon, August 17, 2026 at 6:00 PM GMT+3 4 min read

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Economist Peter Schiff warned of soaring consumer prices as the U.S. national debt approaches a staggering $40 trillion.

Schiff took to X on Thursday and stated that the national debt has surpassed $39.9 trillion, putting it less than $100 billion away from the $40 trillion milestone, which could be reached by the end of August or sooner.

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He predicts that the Federal Reserve will ramp up the printing press to buy Treasuries, leading to a surge in consumer prices.

The national debt is above $39.9 trillion. So there is less than $100 billion to go to hit $40 trillion, which will happen by month-end, if not sooner. As the debt spirals out of control, the Fed will crank up the printing press to buy Treasuries, sending consumer prices soaring.

— Peter Schiff (@PeterSchiff) August 14, 2026

Rising Debt Puts Fed Under Pressure

Schiff's warning comes in the wake of the U.S. debt surpassing 100% of GDP for the first time since World War II. This has sparked debates among economists about the potential inflationary or deflationary impact of this fiscal squeeze.

Schiff earlier warned that America's mounting national debt is putting the Federal Reserve in a bind, making it harder to raise interest rates without sharply increasing borrowing costs. He argued that the mounting debt could push the Fed toward inflation as a way to ease the government's debt burden, and urged investors to consider gold.

Former US Ambassador Nikki Haley has also criticized Washington for ignoring the rising national debt, which she describes as one of the biggest financial threats facing younger Americans. "We're leaving an entire generation broke," she said.

Photo courtesy: Shutterstock

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