US Can Reach 250% Debt-to-GDP Ratio Without Raising Interest Rates: Study

A new paper presented at the Federal Reserve’s Jackson Hole symposium suggests that the United States could accumulate debt equal to 250% of its economy without triggering a spike in interest rates. This is contingent on constant demand for U.S. Treasury bonds, according to researchers Adrien Auclert, Hannes Malmberg, Matthew Rognlie, and Ludwig Straub. )