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How will the federal debt be reduced?

Posted by Bill Witte on Dec 18, 2020 2:04:00 PM

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 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 or read the fully transcribed Q&A on the FTR Blog.

Tags: Economy, inflation, national debt, federal reserve


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