Fed's Barkin said rising U.S. public debt will ultimately face "liquidation",
though the timing is unpredictable. Asked about debt exceeding $40 trillion, he
said the government can keep borrowing while investors keep buying Treasuries,
but warned investors could begin to balk. He cited the dollar's global role and
U.S. rule of law as current supports for demand, but said the risk is that
purchasers eventually stop. Barkin reiterated that, given evidence of falling
inflation, rates should be held steady, while acknowledging policymakers may
need to raise rates if price pressures become entrenched.
