Economist Peter Schiff said the U.S. national debt has climbed above $39.835 trillion, arguing that the Federal Reserve is increasingly trapped between raising interest rates to contain inflation and keeping borrowing costs manageable. In a Saturday post on X, Schiff said larger debt loads make rate increases harder to execute even as they become more important, and he argued that growing debt is pushing the Fed to create inflation to help finance it. He ended his message with a rhetorical nod to gold as a hedge. His warning comes as broader concerns over U.S. fiscal stability intensify. Former U.S. Ambassador Nikki Haley said this week that national debt was nearing $40 trillion and called it a major threat to younger Americans. Billionaire investor Ray Dalio described the current backdrop as a "particularly risky period," pointing to $7 trillion in spending, roughly $5 trillion in government revenue and weakening demand for U.S. debt. Publicly held federal debt has also moved above 100% of GDP, a level not seen since 1946, while analysts cited decades of fiscal inaction and rising debt-servicing costs. Inflation remains a central part of that debate. Earlier this month, New York Fed President John Williams said inflation was expected to ease, but he also said the Federal Reserve could raise rates if needed to bring inflation back to its 2% target. Last month, strategist Charlie Bilello said inflation had stayed above that target for 64 straight months, citing seven-year increases of 127% for coffee, 79% for ground beef, 72% for eggs and 35% for shelter costs. Gold, often treated as an inflation hedge, has also drawn attention in that context. Prices fell from a $5,602 record high to about $3,942 in June in what was described as a three-wave correction. The June low matched the November 2025 low, a support level that attracted buyers during the selloff.