Powell urges Congress to raise debt ceiling in 'timely fashion'
United States Federal Reserve Chair Jerome Powell called on Congress to raise the debt limit in a "timely fashion."
Speaking at The Economic Club of Washington DC, Powell insisted that getting the debt limit extended is something fiscal authorities should deal with but warned that, in case lawmakers fail to raise the debt ceiling in a timely matter, nobody should think the Fed will have the "ability to shield the financial markets or the economy from the consequences of moving too slow."
The administration of US President Joe Biden is still in talks with the Republican-held House about increasing the debt limit and is yet to reach an agreement as House Speaker Kevin McCarthy insisted that the GOP will not agree to pass a bill to raise the debt ceiling that does not include spending cuts.