Federal Reserve’s Jerome Powell “Very Worried” About Massive U.S. Debt

Jerome Powell said today that the Federal Reserve has no choice but to face the mounting U.S. debt balance. That negative balance is now $21.9 trillion. The annual U.S. deficit has reached sustained highs of over $1 trillion. Speaking at The Economic Club of Washington, D.C today Powell said: “I’m very worried about it.” Jerome Powell. Image from Shutterstock. Referring to the long-term implications which can be easily ignored when focusing on shorter-term policies Powell said: “The long-run fiscal, non-sustainability of the U.S. federal government isn’t really something that plays into the medium-term that is relevant for our policy decisions.” Adding: “It’s a long-run issue that we definitely need to face, and ultimately, will have no choice but to face.” Federal Reserve Policy May Have Exacerbated U.S. Debt The Federal Reserve has been pursuing a policy of quantitative tightening. This to counter the quantitative easing put in place in response…

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