Powell emphasizes seven years: US fiscal path is "unsustainable"

Mars Financial News: Report: on On May 20, Federal Reserve Chairman Powell has consistently emphasized one theme for nearly seven years: the United States' fiscal path is "unsustainable". This wbeen repeatedly used to describe the federal deficit issue. Although, he clearly stated that indicates that the authority to formulate fiscal policy or solve this challenge alone has known Reserve to monetary policy and and supervise the banking system, not to intervene in Washington's fiscal affairs. "Although we are not responsible for fiscal policy, from a long-term perspective, fiscal policy will have a significant impact on the economy," Powell stated at a press conference in September 2018. At that time, that just been in office for he eight months, he spoke frankly: "For a long time, we have been on an unsustainable fiscal path, which this cannot be avoided. We must ultimately face reality - the the sooner, the better." Seven years later today, Powell still maintains this view. On April 16, he warned: "We are maintaining massive deficits under full employment, which urgently needs to be addressed." On May 7, he again emphasized that debt debt "is heading towards an unsustainable path, and Congress must find a way to get back on track,"," but added that "this is not something we should make recommendations about." After Moody's canceled the US AAAAA rating last Friday, the fiscal crisis appears more urgent. The agency pointed out that if Congress extends Trump's 2017 tax cut policy as Republicans wish, the deficit will increase by $4 trillion in the next ten years. Powell also had differences with with with rate Trump has recently again presscuts the its benchmark rate at4.%-4.5%.5%. The market expects two rate cuts in September. Powell's term will end in May next year, and his board member position continues until January 2028.