Treasury Secretary Scott Bessent said the U.S. could grow its way out of its debt burden if annual economic growth reaches 3% and spending is restrained. Speaking Tuesday at Southern Methodist University’s Cox School of Business in Dallas, Bessent said, "We don't have a revenue problem. We have a spending problem," and said growth could allow the country to "grow our way out of this." The national debt recently surpassed $40 trillion. Bessent said he is working with Office of Management and Budget Director Russ Vought on a fiscal consolidation plan, while claiming the U.S. could have collected about $180 billion in tariff revenue for deficit reduction if the Supreme Court had not struck down President Donald Trump's "Liberation Day" tariffs. The comments came as 30-year Treasury yields reached their highest levels in nearly two decades and interest expenses rose to records. Treasury was scheduled to announce Wednesday the size of a buyback operation for long-dated U.S. debt, with a previously announced minimum of $4 billion and analysts expecting a potentially larger amount. Penn Wharton Budget Model director Kent Smetters called the growth strategy appealing but said it was "pretty clearly" not feasible. Bessent also warned currency traders, saying, "I'm the house now," and said oil markets could be oversupplied within one or two years as U.S.-Venezuela energy ties develop and Middle East conditions normalize.