Yellen warns of growing threat to US economy

Signage is seen at the United States Department of the Treasury headquarters in Washington, D.C., U.S., August 29, 2020. REUTERS/Andrew Kelly

NEW YORK: A panel of economic luminaries say the long-run risk posed by mounting federal debt represented a paramount problem facing the US economy.

Those risks include the scenario in which the size of the debt prompts the central bank to keep rates low to minimise debt servicing costs, rather than contain inflation – a concept known as fiscal dominance.