Fed-Mitglied Barkin warnt: Die stetig steigende US-Staatsverschuldung wird letztlich mit einer „Abrechnung“ enden.

According to Jinse Finance, Richmond Federal Reserve President Barkin stated that if US debt continues to rise, a “reckoning” will eventually occur, but it is difficult to know when that might happen. When asked about the US public debt surpassing 40 trillion dollars, Barkin noted that as long as the public continues to buy Treasury bonds, the government can keep borrowing. However, he added that investors may eventually begin to resist further borrowing, and this presents a certain risk.

“Over time, this will ultimately be subject to a reckoning. But no one can tell you when that reckoning will come,” Barkin said during an event in Charlotte, North Carolina, on Tuesday. “We have the global currency and the rule of law—these are the reasons people continue to buy our bonds. But, you know, one day people will stop buying your bonds; that’s the risk that exists.”

Barkin reiterated remarks he made earlier this month, where he set out the case for keeping rates stable given evidence that inflation is falling, while also acknowledging that if price pressures persist, officials may have to raise rates.

The Federal Reserve kept rates unchanged for the fifth meeting in a row in July, despite three officials voting in favor of a 25-basis-point rate hike. Barkin, who does not have a vote this year, said it is difficult to gauge how much impact rates are having on the economy.

After the event, Barkin told reporters that July’s rates decision was a “close call.” He explained that one of the reasons for delaying a rate adjustment is that officials will have access to two more months of economic data before the next policy meeting on September 15–16.

“So far, we have received one full set of data; next we will get another full set and see what we can learn from it,” Barkin said.

Policy makers from around the world will gather later this week in Jackson Hole, Wyoming, for the Kansas City Fed’s annual economic symposium. Federal Reserve Chair Kevin Walsh is scheduled to speak on Friday. He faces pressure to address criticism that he has not been sufficiently transparent about his economic views.

Barkin said that the latest trade dispute with Canada has intensified the uncertainty over how tariffs will affect prices and the economy. “I don’t think the Canadian situation itself will have any significant impact on the US position, but I do think whether or not we have a good idea of where tariff rates will ultimately end up—that’s the bigger question, and I haven’t received any signals on that yet,” he said.