How Scott Bessent used financial engineering to finance the $2 trillion deficit while leaving it untouched—and created a $1.45 trillion shortfall

The Treasury Borrowing Advisory Committee warned that the government faces a $1.45 trillion funding shortfall in fiscal 2027–28. To finance a roughly $2 trillion annual deficit, Scott Bessent leaned heavily on cheaper short-term rates today, which exposes the government to inflation and rising interest costs. Experts also warn of potential strain due to anticipated converging waves of long-term supply from both Treasury and the Federal Reserve.