Fed chair warns of rising debt, urges ‘fiscal sustainability’

Original article here.

Federal Reserve Chairman Jerome Powell over the weekend urged the nation to address its mounting debt, highlighting the fact that economic growth had not kept pace with federal expenditure.

Last week, the Federal Reserve declined to lower interest rates, citing concerns that a decrease could boost inflation. The central bank had previously approved a series of hikes as a means of combatting rising prices. The Fed has held the current interest rate since July.

Powell on Sunday, pointed broader economic concerns, insisting in an appearance on “60 Minutes” that “[t]he debt is growing faster than the economy, so it is unsustainable. It’s time for us to get back to putting a priority on fiscal sustainability. And sooner’s better than later,” according to Politico.

The current U.S. national debt stands at roughly $34.15 trillion. Powell did not articulate specific policy decisions he thought lawmakers ought to adopt, but warned that the situation was “urgent” and insisted Congress ought to act.

Last year, Republicans sought to secure steep spending cuts in a budget deal that threatened a government shutdown. Congress in January approved a continuing resolution to delay the funding deadlines until March.