Video News/In Focus with Jeremy Szafron

James Grant, Founder of Grant’s Interest Rate Observer, says rising debt levels and higher bond yields are exposing limits to U.S. monetary policy. Speaking with Kitco News anchor Jeremy Szafron, Grant argued that the current environment reflects “fiscal dominance,” where the government’s borrowing costs constrain the Federal Reserve’s ability to act independently. Grant pointed to growing risks in private credit markets, describing a buildup of leverage and weakened lending standards that could unwind during a period of stress. He said the cycle may ultimately end in a “gale of fear” as credit conditions tighten. Grant also examined long-term currency debasement and its relationship to gold, arguing that rising debt and monetary constraints continue to support higher gold prices over time.