11/13/2019, 3:52 PM (Source: TeleTrader)
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Powell: US budget is on unsustainable path

The federal budget of the United States is on an "unsustainable path," Federal Reserve Chair Jerome Powell said on Wednesday. According to his prepared statement released before his testimony in Congress, Powell warned increasing debt could influence economic growth in the country negatively in the long-term. He pointed out it could lead to fewer private businesses willing to invest.

The Fed chair commented: "Putting the federal budget on a sustainable path would aid the long-term vigor of the US economy and help ensure that policymakers have the space to use fiscal policy to assist in stabilizing the economy if it weakens." Powell also noted that money market interventions implemented by the central bank do not amount to a new monetary policy as they are in place so that the Fed can "learn about the appropriate level of reserves."

Powell is due to testify before the US Congress' Joint Economic Committee later in the day.

Breaking the News / VP