Federal Reserve Chair Jerome Powell expressed concerns about the fiscal trajectory of the U.S. while addressing the students at Harvard University on Monday.
Powell acknowledged that the $39 trillion debt load, while not immediately threatening, is on an unsustainable path that demands urgent legislative intervention. “It will not end well if we don’t do something fairly soon,” Powell said.
He distinguished the level of debt and its trajectory, arguing that the U.S, as the issuer of the world’s reserve currency and home to the deepest capital markets, can sustain a far larger debt burden than smaller economies.
In response to a student’s inquiry about the U.S. debt’s breaking point, Powell said that the exact threshold is uncertain. …Full story available on Benzinga.com
