---
title: How will the federal debt be reduced?
description: The most likely thing that will happen is that the debt will gradually be worked off in the way that usually occurs is through inflation.
image: https://ask.ftrintel.com/hubfs/AskTheExperts_FeaturedImages-06.jpg
---

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# How will the federal debt be reduced?

Posted by [Bill Witte](https://ask.ftrintel.com/author/bill-witte) on Dec 18, 2020 2:04:00 PM

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**The FTR Experts were posed with the question, "How will the federal debt be reduced?"**

Following *The 2021 Outlook*, the final session of the[ FTR Engage](https://freight.ftrintel.com/ftrengage) virtual speaking series, the FTR Experts sat down to answer listener questions beyond what was covered during the Q&A within the presentation.

 

**Key Takeaways:**

- Debt in the economy is high. Government debt as well as corporate debt is high. The Federal Reserve has been holding interest rates low to encourage people to borrow. 
- Debt will most likely be gradually worked off through a combination of inflation and economic growth.
- In the next decade, we will have an economy that has the potential for much more significant inflation than we've had for the last two or three decades, which will be a new experience for all of us.

Listen to the full discussion on the [State of Freight Podcast](https://www.ftrintel.com/podcast#SpecialEpisodes) or read the fully transcribed Q&A on the [FTR Blog](https://www.ftrintel.com/blog/2021outlook/).

 Tags: [Economy](https://ask.ftrintel.com/tag/economy), [inflation](https://ask.ftrintel.com/tag/inflation), [national debt](https://ask.ftrintel.com/tag/national-debt), [federal reserve](https://ask.ftrintel.com/tag/federal-reserve)

 

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