Kenneth Rogoff, former chief economist of the International Monetary Fund, warned that high debt levels and political gridlock have set the stage for a looming crisis in the U.S. According to Rogoff, the U.S. may fall into an inflationary crisis driven by its debt within the next decade.

While the country can alleviate some pressure, Rogoff cautions that excessive spending without resolving underlying issues could lead to recurring financial struggles. If this happens again, it would erode market trust in the U.S., leading to higher interest rates and faster-growing debt. In a scenario of unchecked fiscal spending, the market may eventually deem the U.S. as "untrustworthy," resulting in skyrocketing interest rates and accelerating debt expansion, creating a vicious cycle.