On Thursday, Federal Reserve Chairman Jerome Powell said that U.S. government debt is on an “unsustainable path,” warning that a recession is possible as inflation soars and the U.S. economy is shrinking.
Powell’s remarks were part of his testimony before the House Financial Services Committee during the second day of appearances on Capitol Hill.
“The U.S. is on an unsustainable fiscal path, meaning the debt is growing faster than the economy,” said Powell. “By definition, that is unsustainable.”
Powell says US is on a “unsustainable fiscal path” meaning the debt is growing faster than the economy. “There will reach a point at which it becomes a problem in servicing the debt. We’re not at that point. We’re not close to that point.”