(Jan 5): A panel of economic luminaries said the long-run risk posed by mounting federal debt represented a paramount problem facing the US economy. “The preconditions for fiscal dominance are clearly strengthening,” former Treasury secretary and Federal Reserve (Fed) chair Janet Yellen said on Sunday during a panel discussion at the American Economic Association’s annual meeting in Philadelphia. Yellen also noted that President Donald Trump has “vocally demanded” the Fed lower interest rates explicitly to reduce the government’s debt-servicing costs. “I doubt Americans will end up on the fiscal dominance course, but I definitely think the dangers are real and should be monitored,” she said. “We have a fiscal problem,” Romer said.

Source: The Edge Markets January 04, 2026 23:18 UTC