High and Rising US Federal Debt: Causes and Implications

This chapter examines the drivers and consequences of rising U.S. federal debt. Dynan analyzes long-term fiscal pressures stemming from demographic change, healthcare spending, tax policy, and economic shocks, while evaluating the implications of sustained high debt levels for economic growth, interest rates, fiscal flexibility, and financial stability. The chapter discusses policy tradeoffs involved in managing federal debt and outlines considerations for building a more resilient U.S. economy.