Even with the federal IOU at $25.6 trillion and counting, the central bank official said there's still plenty of room to spend more.
"I don't think we're anywhere near the limit to that," Williams said during a webinar presented by Stony Brook University in Long Island. "The U.S. government is issuing a lot of debt right now, and global investors are gobbling it up."
Congress has been debating additional stimulus that could run to $3 trillion as states begin a tentative reopening of their shuttered economies. All of that has resulted in $310.5 billion in interest payments in fiscal 2020, a total held in relative check by record-low interest rates for government debt as the Fed has sent its benchmark borrowing rate to near zero. While central bank officials have expressedfor an extended period of time, Williams said he doesn't see the need for negative rates.
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