What do you think about the statements by Fed Chair Jerome Powell?

In the long run, the U.S. federal government is on an unsustainable budgetary path, according to Federal Reserve Chairman Jerome Powell, because of its spiraling debt that is expanding faster than the country's GDP. The Fed chair also issued a warning, stating that certain banks would need to be shuttered or merged into another company entirely.

Jay Powell on the Banking Crisis, Rate Cuts, and the US Economy

In an interview with 60 Minutes that aired on Sunday, Federal Reserve Chair Jerome Powell discussed concerns about the US economy, interest rate reductions, and a potential financial catastrophe. In response to a query on whether the US economy is at risk due to the national debt, Powell stated:

He underlined that "it is unsustainable," noting that it indicates "the debt is growing faster than the economy." Powell emphasized, though, "I don't think that's at all controversial." We need to put ourselves back on a financially viable course, and I believe you're starting to hear from elected officials about how to do that. It's time for us to return to that priority.

In order to mitigate what appeared to be extremely serious negative risks, the government was forced to spend heavily as a result of the epidemic, the Fed chair added. Resuming an adult discussion among elected leaders about putting the federal government back on a sustainable budgetary path is definitely time, if not past time.

Powell stated that the Fed wants to see more evidence that inflation is moving sustainably down to 2%" in reference to when the bank would begin reducing interest rates. Before we make the crucial decision to start lowering interest rates, we simply need greater assurance. "Basically, we want to see more good data," he added. It need not be superior to or even close to what we have already witnessed. It only has to be excellent. We thus anticipate seeing it. And for that reason, nearly every member of the Federal Open Market Committee thinks that this year's interest rate reduction will be acceptable.

Powell also talked about the possibility of national bank failures similar to those that occurred in 2008. "I don't think there's much risk of a repeat of 2008," stated the Fed chairman. Additionally, I believe that we should exercise caution when making declarations, especially ones about the future. Many things have taken us by surprise. However, I do believe that this is a doable issue. However, he issued a warning:

That's it 💥 !!