In testimony before Congress Wednesday, the outgoing Federal Reserve chair said she’s “very worried” about the trajectory of the nation’s debt, which now totals more than $20 trillion, $14.9 trillion of which is held by the public.
“Our current debt-to-GDP ratio of about 75 percent is not frightening, but it's also not low," Yellen said. "But when you look at, for example, CBO's long-term budget projections, it's the type of thing that should keep people awake at night. It shows a picture in which, as our population ages, expenditures on Medicare, Medicaid and Social Security grow more rapidly than tax revenues, and the debt-to-GDP ratio moves up. This should be a very significant concern."
