US Federal Reserve rings alarm about America's soaring debt

The US deficit stands at $20 trillion and will rise to $30 trillion in a decade. That should be a reason for concern, according to the US Fed.

"I believe the Federal Reserve should be gradually and patiently raising the federal funds rate during 2018," Dallas Federal Reserve Bank President Robert Kaplan said on Wednesday.

"History suggests that if the Fed waits too long to remove accommodation at this stage in the economic cycle, excesses and imbalances begin to build, and the Fed ultimately has to play catch-up."

Kaplan's words come after this week's report by Goldman Sachs indicated that US debt will turn unsustainable under the Republican leadership. Kaplan previously worked for Goldman as vice chairman.

The new US budget pushed by Donald Trump's administration envisages serious growth in military spending, and American debt could reach ...