Economist Peter Schiff warned that America’s mounting national debt could leave the Federal Reserve caught between keeping interest rates high enough to contain inflation and keeping borrowing costs manageable.
Schiff Warns of $39.8 Trillion Debt and Inflation Risk On Saturday, Schiff said in a post on X that the U.S. national debt has climbed above $39.835 trillion, arguing that the growing debt is creating a difficult policy dilemma for the Federal Reserve.
"The larger the debt grows, the harder it is for the Fed to raise interest rates," he wrote.
He added, "But the more important it becomes to raise rates." Schiff argued that "the growing debt is what's driving the Fed to create inflation to help finance it." He concluded his warning with a pointed question to investors: "Got gold?" The U.S. national debt now exceeds $39.835 trillion.
The larger the debt grows, the harder it is for the Fed to raise interest rates, but the more important it becomes to raise rates, as the growing debt is what's driving the Fed to create inflation to help finance it.
