US public debt is 'going faster' than economic growth, the Fed Chairman stated what needs to be done

The Fed Chairman said that US public debt is unsustainable. (Source: Getty Images


According to the US Department of Finance, the country's public debt is currently at over 34,000 billion USD. Mr. Powell said that in the long term, the government will be on a financially unsustainable path. This means debt is growing faster than the economy's growth rate. "Now is the time to prioritize financial sustainability and doing this as soon as possible," the Fed Chairman emphasized. Last week, the Fed kept interest rates unchanged at its fourth consecutive meeting. While saying the risks to its employment and inflation goals were more balanced, the Fed said it would not lower interest rates anytime soon. Vietnam's economy develops, people's lives are increasingly improvedVietnam's economy develops, people's lives are increasingly improved Mr. Powell reiterated that view and said that it is impossible to lower interest rates at the upcoming meeting in March 2024.
Regarding the necessary conditions for lowering interest rates, he said, the most important thing is to weigh the risks between acting too early and acting too late. The Fed currently applies the highest interest rate in 23 years at 5.25-5.5%. FOR YOU A poll of economists conducted by the National Association of Business Economics (NABE) shows that the US economy will avoid a recession next year.
About 91% of participants in NABE's latest survey believe the probability of the US entering a recession in the next 12 months is 50% or less. The data is a far cry from the view a year ago when most economists predicted a recession as the Fed raised interest rates to deal with high inflation. The optimism of economists expressed in the survey corresponds with recently released economic data, including a measure of consumer confidence that rose to its highest level in two and a half years. In addition, inflation is falling faster than expected and the labor market is cooling but not too quickly