Federal Reserve Chairman: The US government is on a path to fiscal instability
Asked whether the current debt poses a risk to the US economy, Federal Reserve Chairman Jerome Powell said: "The US federal government is on a long-term path to fiscal instability." He noted that this would mean faster debt growth than the economy. However, Powell added: "I don't think it's a strange issue at all. "I think we know we have to get back on a sustainable financial path." He also stated about the timing of the Federal Reserve's decision to start the process of interest rate cuts: "We are looking for more evidence to ensure a sustained reduction in inflation to 2%." We want to be more certain about the situation before taking that very important step to start lowering interest rates.