The US national debt just passed $40 trillion, and the government is now stuck trying to solve three problems at once that work against each other.

• The debt jumped from $34.5 trillion in early 2024 to $40 trillion today, with no recession, pandemic, or war to explain it.
• The government wants to bring factories back home, which is expensive and slow.
• It also needs prices to stay calm, because voters forgive almost anything except pricier groceries and gas.
• At the same time it needs a strong economy, a strong stock market, and low unemployment so tax money keeps flowing in to cover the interest on that $40 trillion.

Outlook: These three goals pull against each other, so something likely has to give — expect pressure on prices, growth, or the debt itself in the months ahead.