Federal Reserve Bank of Minneapolis President Neel Kashkari said Monday investor confidence is key to how the government navigates high levels of deficit spending.

“Right now there's a question mark being raised about, what is the U.S. long-term competitive position going to be relative to other advanced economies around the world” amid rising debt levels, Kashkari said at an event in Minneapolis.

The degree to which investors remain confident will influence how borrowing costs are set amid high levels of borrowing.