Williams: Strong Demand for US Debt Despite High Borrowing

Federal Reserve Bank of New York President John Williams said that demand for US government debt remains robust despite high levels of borrowing. He made this statement at an event in Newburgh, New York.

The Fed is watching the very high level of government borrowing 'very carefully', according to Williams. The reason for the strong demand lies in America's reputation as a safe haven, which has not changed even with geopolitical issues. Williams said that 'America is still seen as the strongest economy in the world' and a good place to park cash.

However, the ongoing Middle East conflict is increasing strains in supply chains. Williams noted that while the US was relatively protected due to its status as a major energy producer, troubles are emerging in Asia and Europe. He warned of possible 'spillovers' from the current situation.