US National Debt Traps Fed in Rate-Hike Dilemma: Schiff Warns of Inflation Risk

Economist Peter Schiff warns that America's mounting national debt is creating a difficult policy dilemma for the Federal Reserve. The U.S. national debt has climbed above $39.835 trillion, making it harder for the Fed to raise interest rates, yet more important than ever to do so.

Schiff argues that the growing debt is driving the Fed to create inflation to help finance it. He notes that experts are warning of a major financial threat to younger Americans due to the rising debt, and that it's leaving an entire generation broke.

The publicly held federal debt has exceeded 100% of GDP, reaching levels not seen since 1946. This is attributed to decades of fiscal inaction and could put further pressure on government finances. Inflation remains above the Fed's target, with prices for coffee, ground beef, eggs, and shelter costs increasing significantly over the past seven years.