Skip to content
Subscriber Only

Kudlow’s War Bonds Are Coming, But in a Plain Vanilla Wrapper

  • Treasury to sell record debt to fund virus-related stimulus
  • U.S. may spin 20-year bond reboot with patriotic flavor
Larry Kudlow speaks to members of the media in Washington, D.C., on April 14.
Larry Kudlow speaks to members of the media in Washington, D.C., on April 14.

Photographer: Stefani Reynolds/CNP/Bloomberg

President Donald Trump’s top economic adviser Larry Kudlow may get the war bonds he wants as the U.S. swells its debt pile to levels unlike anything seen since World War II.

They won’t actually be called war bonds, an idea Kudlow says he discussed with Trump and Treasury Secretary Steven Mnuchin. They won’t actually be any different than the type of securities already being auctioned -- beside a reboot of a maturity that was previously shelved -- but they will be part of what the president calls his war with the “invisible enemy” of Covid-19. And they likely will cause the amount of U.S. debt to match the size of the economy for the first time since the 1940s.