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On August 26, Federal Reserve's Barkin stated that if U.S. debt continues to rise, it will eventually face 'clearing', although it is difficult to predict when this will occur. When asked about the total U.S. public debt exceeding $40 trillion, Barkin mentioned that as long as the public continues to purchase Treasury bonds, the government can keep borrowing. However, he added that investors may start to show signs of resistance. Barkin said, 'As this develops, it will eventually face clearing. It's just that no one can predict the specific timing. We have a global currency and a rule of law system—these are the reasons people continue to buy our debt. But you know, one day, people will stop buying your debt, and that's the risk that currently exists.' Additionally, Barkin reiterated his earlier comments from earlier this month, stating that given the evidence of declining inflation, interest rates should remain stable, but he also acknowledged that if price pressures become entrenched, policymakers may have to raise rates.

On August 26, Federal Reserve's Barkin stated that if U.S. debt continues to rise, it will ultimately face 'clearing', although it is difficult to predict when this will occur. When asked about the total U.S. public debt exceeding $40 trillion, Barkin noted that as long as the public continues to purchase government bonds, the government can keep borrowing. However, he added that investors may start to show resistance. Barkin remarked, 'As things progress, this will ultimately face clearing. It's just that no one can predict the exact timing. We have a global currency and a rule of law system—these are the reasons people continue to buy our debt. But you know, one day, people will stop buying your debt, and that is the risk that exists today.' Additionally, Barkin reiterated his earlier comments from this month that, given the evidence of declining inflation, interest rates should remain stable, but he also acknowledged that if price pressures become entrenched, policymakers may have to raise rates.

On August 26, Axios reported that U.S. Secretary of State Rubio recently informed officials from several allied countries that the U.S. does not currently expect to launch new military strikes against Iran. According to informed sources, the current policy of the Trump administration is to 'temporarily avoid military action against Iran,' instead increasing economic pressure through U.S. Navy blockades and a new round of sanctions from the Treasury Department, while facilitating as much oil as possible to flow through the Strait of Hormuz into the global energy market. U.S. officials stated that the removal of most mines in the Strait of Hormuz and the recent increase in oil tankers using southern routes have 'significantly weakened Iran's influence on the global energy market.' One U.S. official remarked, 'Iran has lost control of the Strait; the U.S. now controls it.' U.S. officials believe that the maritime blockade is cutting off a crucial source of revenue for Iran, as there have been almost no oil tankers near Iran's main oil export port of Khark Island in the past two weeks. Rubio indicated that there are currently no plans to resume large-scale military operations, but the U.S. retains the option to strike if Iran initiates an attack. Another U.S. official stated that this policy is expected to last at least until after the midterm elections, at which point new military actions may again become an option.