Volker Wieland: "The impending surge in government debt won’t make it easier for the Fed to keep inflation stable. Since the financial crisis and the recession of 2008/9, US debt compared to economic performance has massively increased. It climbed from 62 percent of the GDP in 2007 to 104 percent in 2017.
However, US debt is partly carried by other state agencies. That is why public debt has actually increased from 35 percent to 75 percent. This situation gives cause for concern.
As the long-term projections of the Congressional Budget Office have been showing for years, especially higher spending for health care and social security will grow faster than revenue. Higher interest rates also contribute to this development. The Obama administration didn’t manage to get this under control. The tax cuts of the Trump administration may exacerbate this even more. It would have been better to combine the tax cuts with cuts in expenditure as planned in former legislative initiatives of the Republican majority in the House of Representatives e.g. in 2013.
Basically, the US has a greater margin than the euro member states as the US accumulates debt in its own currency, which is at the same time the most important global currency. The massive increase in public debt threatens price stability."