Professor Rogoff: Difficult to Respond Until Major Financial Crisis Hits the U.S.

The financial situation in the United States is deteriorating, and warnings have emerged that the government may struggle to address the issues before a large-scale crisis occurs. On the 28th, during an interview with Bloomberg TV at the Jackson Hole meeting, Professor Kenneth Rogoff from Harvard University stated, "It is highly likely that there will be no movement to resolve the U.S. fiscal problems until they shock voters with a major crisis." The national debt of the United States has surpassed $40 trillion for the first time in history, and rising interest rates are increasing the government's interest burden. Professor Rogoff pointed out, "While interest rates have rebounded from their lows and continue to rise, political leaders have been unable to adjust policies." He mentioned factors that could shock the U.S. economy within the next five years, including cyber warfare, economic disruption caused by artificial intelligence (AI), and military conflict between China and Taiwan, with the latter being the most likely source of a significant shock. Professor Rogoff emphasized, "Crisis comes when we do not have the resilience to respond to shocks when they occur."

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