More debts by itself is not necessarily a bad thing, as long as its percentage to GDP is stable or decreasing as it’s the case right now. While the US economy is still red hot and near full employment, the rest of the developed world is questionable at best. The strongest economy in EU, Germany only grew 1.8% in 2018, and Italy is -2%. As a result the ECB held its rate in Jan. As a common sense, when the going is good, it’s probably a good time to reduce some of that debt so when the bad time comes, there’s a room to maneuver. But the Fed must have seen something that we don’t see in the last FOMC by leaving the rate unchanged and signaled no increase for the rest of 2019 which is a little surprising.
