Fed Chair Jerome Powell warns government debt is on an unsustainable path

Federal Reserve Chairman Jerome Powell has said that US government debt is on an ‘unsustainable path’ while admitting that he underestimated the threat of inflation and warning that a recession is possible.

Powell’s remarks came in testimony before the House Financial Services Committee on Thursday, as the powerful Fed chair wrapped up a second day of appearances on Capitol Hill.

‘The US is on an unsustainable fiscal path, meaning the debt is growing faster than the economy,’ said Powell. ‘By definition, that is unsustainable.’

Powell said that for now, the US has no issue servicing its debt, and that although there is no imminent threat of default, eventually government debt will have to drop back below economic growth.  

‘We will need to get back where revenues and spending are better aligned. We don’t need to pay the debt down, we just need to have the economy growing faster than the debt over a longer time,’ he said.

Powell was in the hot seat this week primarily over the issue…

Read the Full Article Here Dailymail

Written by Bourbiza Mohamed

A technology enthusiast and a passionate writer in the field of information technology, cyber security, and blockchain

Leave a Reply

Your email address will not be published.

England v New Zealand: Jack Leach strikes on the opening day of a home Test for the first time

Detective who led search for missing Dorset teen stands by decision to arrest three innocent people