(Kitco News) – Soaring debt levels threaten to render the Federal Reserve powerless, taking away its ability to fight inflation, warned Tavi Costa, macro strategist at Crescat Capital.
In a recent interview with Jeremy Szafron, Anchor at Kitco News, Costa highlighted the increasing irrelevance of traditional monetary tools like interest rate adjustments in the face of unprecedented fiscal challenges.
Costa remarked on the alarming trajectory of the U.S. national debt, which, according to the U.S. Treasury, recently exceeded $34.5 trillion, emphasizing the gravity of this fiscal challenge. The Congressional Budget Office recently projected that U.S. federal government debt, which was 97% of GDP last year, is projected to rise to 116% by 2034. This projected level would surpass the debt levels experienced during World War II.
“At some point, the debt problem is going to be so…
