Fears of a US debt crisis are 'imaginary', and what the economy needs is more investment in critical infrastructure, economist says

• A US debt crisis is an "imaginary" fear, and policymakers should focus on "real" problems, UC Berkeley economist Barry Eichengreen said.
• He stressed the importance of investment, which could stimulate the economy and lighten the debt burden.
• "Those who imagine an imminent debt crisis are making much ado about nothing."

Federal debts are rising, but a US debt crisis is an "imaginary" fear, according to UC Berkeley economist and former International Monetary Fund advisor Barry Eichengreen.

While lawmakers debate over lifting the government's $31.4 trillion debt ceiling, he urged them to direct their concerns to spending more on critical infrastructure needs.