Fed Chair Jerome Powell Warns United States on Unsustainable Fiscal Path Amid Record-High National Debt

Fed Chair Jerome Powell Warns United States on Unsustainable Fiscal Path Amid Record-High National Debt

Spread the love

U.S. Federal Reserve Chair Jerome Powell is warning that the government cannot continue on its path of relentless debt accumulation.

In a new 60 Minutes interview with Scott Pelley, Powell says the ballooning national debt is becoming a danger to the stability of the US economy.

The Fed Chair calls the attention of the US federal government, saying that the next generation will likely pay the price unless the country finds a way to grow the economy while reducing its debt burden.

“In the long run, the US is on an unsustainable fiscal path. The US federal government is on an unsustainable fiscal path and that just means that the debt is growing faster than the economy…

Over the long run, of course, it does [worry me]. Effectively, we’re borrowing from future generations. It’s time for us to get back to putting a priority on fiscal sustainability and sooner is better than later.”  

According to the Treasury Department, the national debt now stands at a record-high of $34.147 trillion, accounting for about 123% of the country’s GDP.

But for now, Powell says the US economy is in a solid position to witness growth with inflation trending down to the Fed’s target of 2%. According to Powell, the Federal Reserve just needs more data to confirm that the time is right to loosen monetary policies.

“We have a strong economy. Growth is going on at a solid pace. The labor market is strong, 3.7% unemployment.

With the economy strong like that, we feel like we can approach the question of when to begin to reduce interest rates carefully. We want to see more evidence that inflation is moving sustainably down to 2%. We have some confidence in that. Our confidence is rising. We just want some more confidence before we take that very important step of beginning to cut interest rates.” 

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: DALLE3

Related News

mica-and-the-rise-of-merchants’-trust-in-the-crypto-payments-industry-–-is-it-possible?
man-behind-$4,500,000,000-bitfinex-hack-turns-into-federal-witness-in-money-laundering-trial
dogecoin-(doge)-futures-reach-record-setting-open-interest-at-$1,000,000,000