Federal Reserve Chair Jerome Powell has raised concerns about the United States’ unsustainable fiscal trajectory, emphasizing the importance of addressing it as a priority issue.

Speaking at the ECB Forum on Central Banking in Sintra, Portugal, Powell highlighted the pressing need to tackle the “very large” deficit currently being run by the US. Although refraining from commenting on specific policies of any administration, Powell stressed the crucial requirement for the US to steer back towards a financially sustainable path.

Emphasizing the traditional stance of the Federal Reserve, Powell underlined that fiscal policy falls within the purview of elected officials, and hence, the Federal Reserve refrains from making direct comments, especially in the lead-up to a presidential election. Nevertheless, Powell acknowledged the substantial deficit the US faces despite being at full employment, cautioning that the current trajectory is unsustainable in the long run.

Expressing the non-controversial view that addressing this issue should be at the forefront of national priorities, Powell noted the imperative of returning to a sustainable fiscal path. Highlighting the risks of running persistent deficits in favorable economic conditions, Powell stressed the necessity of taking action sooner rather than later to avert potential consequences in the future.

As of the latest data, the US government grapples with a $1.2 trillion deficit and a total debt of $34.8 trillion.

Stay informed by subscribing to receive email alerts directly to your inbox and following Price Action on X, Facebook, and Telegram. Explore The Daily Hodl Mix for more updates.

Disclaimer: The opinions expressed on The Daily Hodl do not constitute investment advice. Investors are urged to conduct thorough research before engaging in high-risk investments involving Bitcoin, cryptocurrency, or digital assets. Please exercise caution as all transfers and trades are conducted at your own risk, with any resulting losses becoming the responsibility of the individual. The Daily Hodl does not advocate for the buying or selling of cryptocurrencies or digital assets, nor does it operate as an investment advisory service. Kindly note that The Daily Hodl engages in affiliate marketing activities.