In particular, it increases the risk of a fiscal crisis—that is, a situation in which the interest rate on federal debt rises abruptly because investors have lost confidence in the U.S. government’s fiscal position. … Even if things don’t reach such a precipitous crisis, according to Swagel, there is an increased likelihood of ‘less abrupt, but still significant, economic and financial consequences, such as expectations of higher inflation and more difficulty financing public and private activity in international markets.’