“Given the low level of interest rates, there’s no issue about the United States being able to service its debt at this time or in the foreseeable future,” – Fed Chair Jerome Powell. Maintaining low rates to minimize debt service expense is top of mind with the Fed as we wrote last week and as Powell said today. Should the Biden Administration push through a $4 Trillion infrastructure package, that action will take the Trump and Biden debt-funded stimulus packages to $10 Trillion in the aggregate. Federal Debt at that juncture will be $33 Trillion, approximately one-third higher than GDP (the fiscal deficit will get wider). More inflation is coming and the U.S. will likely require a Volcker-styled Fed Chair to right the ship. Here’s Powell’s interview from earlier today with NPR: click HERE

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