Goldman Sachs Says US Debt Risks a ‘Slow-Motion Collision’ With the Fight Against Inflation

Goldman Sachs warns of a conflict between anti-inflation efforts and surging debt loads, emphasizing US debt challenges. Rising rates to combat inflation increase government interest costs. Central bank actions limit debt reduction via inflation. Countries prone to high inflation and fiscal laxity are especially vulnerable. As the US faces a forecasted $2 trillion overspending in 2023 and $7.6 trillion of its debt maturing within a year, pressures on rates intensify.