Fed’s Powell Warns US Budget on ‘Unsustainable Path’

The U.S. budget is on an unsustainable path, which makes it crucial for policymakers to deal with it sooner rather than later, Federal Reserve Chair Jerome Powell told senators on June 22.
During Powell’s testimony before the Senate Banking Committee about his semi-annual monetary policy report, several Republican senators pressed him on the federal budget and its effect on inflation.
Sen. Tim Scott (R-S.C.), the committee’s ranking Republican member, noted that the actions Congress takes “impacts significantly what you’ve had to do in order to slow down Biden’s absolutely explosive inflation.”
The central bank chief stopped short of critiquing fiscal policy, but he did concede that the federal budget “is on an unsustainable path.”…}