Close Menu
  • Entertainment
  • Lifestyle
  • Relationships
  • Tips & Tricks
  • Celebrity Kids
Facebook X (Twitter) Instagram
  • Disclaimer
  • About us
  • Privacy Policy
  • Contribute & Advertise with Us
Facebook X (Twitter) Instagram Pinterest Vimeo
GistFestGistFest
  • Entertainment

    Exes Megan Fox and MGK Unveil Their Baby Girl’s Name Following ‘Celestial Seed’ Mix-Up

    June 20, 2025

    Jessica Alba Paid Tribute to Estranged Husband Cash Warren on First Father’s Day After Their Split

    June 19, 2025

    King Charles’ Father’s Day Message 2025: Subtle Nod to Prince Harry Sparks Speculation of Royal Reconciliation

    June 18, 2025

    Katy Perry and Orlando Bloom Facing Turbulent Times in Their Relationship

    June 17, 2025

    Teyana Taylor and Aaron Pierre Make Romance Official with a Kiss During His 31st Birthday Celebration

    June 16, 2025
  • Lifestyle

    Exes Megan Fox and MGK Unveil Their Baby Girl’s Name Following ‘Celestial Seed’ Mix-Up

    June 20, 2025

    Jessica Alba Paid Tribute to Estranged Husband Cash Warren on First Father’s Day After Their Split

    June 19, 2025

    King Charles’ Father’s Day Message 2025: Subtle Nod to Prince Harry Sparks Speculation of Royal Reconciliation

    June 18, 2025

    Katy Perry and Orlando Bloom Facing Turbulent Times in Their Relationship

    June 17, 2025

    Teyana Taylor and Aaron Pierre Make Romance Official with a Kiss During His 31st Birthday Celebration

    June 16, 2025
  • Relationships

    Exes Megan Fox and MGK Unveil Their Baby Girl’s Name Following ‘Celestial Seed’ Mix-Up

    June 20, 2025

    Jessica Alba Paid Tribute to Estranged Husband Cash Warren on First Father’s Day After Their Split

    June 19, 2025

    King Charles’ Father’s Day Message 2025: Subtle Nod to Prince Harry Sparks Speculation of Royal Reconciliation

    June 18, 2025

    Katy Perry and Orlando Bloom Facing Turbulent Times in Their Relationship

    June 17, 2025

    Teyana Taylor and Aaron Pierre Make Romance Official with a Kiss During His 31st Birthday Celebration

    June 16, 2025
  • Tips & Tricks

    Exes Megan Fox and MGK Unveil Their Baby Girl’s Name Following ‘Celestial Seed’ Mix-Up

    June 20, 2025

    Jessica Alba Paid Tribute to Estranged Husband Cash Warren on First Father’s Day After Their Split

    June 19, 2025

    King Charles’ Father’s Day Message 2025: Subtle Nod to Prince Harry Sparks Speculation of Royal Reconciliation

    June 18, 2025

    Katy Perry and Orlando Bloom Facing Turbulent Times in Their Relationship

    June 17, 2025

    Teyana Taylor and Aaron Pierre Make Romance Official with a Kiss During His 31st Birthday Celebration

    June 16, 2025
  • Celebrity Kids

    Exes Megan Fox and MGK Unveil Their Baby Girl’s Name Following ‘Celestial Seed’ Mix-Up

    June 20, 2025

    DDG Files Restraining Order Against Halle Bailey

    June 10, 2025

    Angelina Jolie and Brad Pitt’s Divorce Timeline

    June 2, 2025

    Meryl Streep’s Daughter Louisa Jacobson Shares Her and Partner, Anna Blundell’s Plans for Valentine’s Day

    February 14, 2025

    Brenda Song and Macaulay Culkin’s Son’s Name Revealed

    January 12, 2025
Subscribe
GistFestGistFest
Home » Powell Warns US Is on an “Unsustainable Fiscal Path”
General

Powell Warns US Is on an “Unsustainable Fiscal Path”

WinifredBy WinifredApril 3, 20246 Mins Read
Share Facebook Twitter Pinterest LinkedIn Tumblr Reddit Telegram Email
Jerome Powell's Interview on “60 minutes”
Source: NBC News/YouTube
Share
Facebook Twitter LinkedIn Pinterest Email

Federal Reserve Chair Jerome Powell has raised a red flag, warning that the United States is heading towards an “unsustainable fiscal path.”

Table of Contents

Toggle
  • The National Debt Has Hit Record Highs
  • The Debt is Outgrowing the Economy
  • The Deadlines for Federal Funding are Drawing Close
  • Is There Hope for Economic Growth?
  • Inflation Affects Interest Rate Adjustments
  • Powell Warned About Future Interest Rate Cuts
  • He Advised that Economic Conditions Be Considered for Decisions
  • Powell and the Fed Have Been Accused of Being Political
  • Trump Regularly Criticized Powell
  • Democrats Also Weighed In on the Matter
  • Powell’s Stance on the Accusations
  • There’s an urgent call for fiscal responsibility
Jerome Powell's Interview on “60 minutes”
Source: NBC News/YouTube

Powell shared his concerns about the fiscal direction of the United States during a “60 minutes” candid interview with Scott Pelley. He emphasized that the national debt was growing faster than the economy and becoming a threat.

The National Debt Has Hit Record Highs

In early January, the U.S. national debt exceeded $34 trillion for the first time. This came just over three months after it passed the $33 trillion milestone. This data was released by the U.S. Treasury.

The United States Treasury
Source: Bloomberg Television/YouTube

As a result, since the end of September, Congress has postponed spending deadlines three times. This delay reflects the challenge of funding the government while dealing with concerns about the growing national debt.

ALSO READ: The Downward Trend of California’s Economy is Causing Many Residents to Groan, and Some Are Relocating

The Debt is Outgrowing the Economy

Powell stated in the interview, “The debt is growing faster than the economy.” Last spring, President Biden and House Republicans clashed over the borrowing limit but managed to avoid a crisis just before the U.S. faced default. 

Powell Says the National Debt is Growing Faster than the Economy
Source: Yahoo Finance/YouTube

However, in August, Fitch Ratings downgraded the U.S. credit rating from “AAA” to “AA+” This was due to concerns about the growing national debt and ongoing partisan disagreements over the debt limit.

The Deadlines for Federal Funding are Drawing Close

The short-term funding passed by Congress for federal agencies is about to run out. Four federal agencies face funding expiration on March 1, while the remainder will run out on March 8. 

U.S. Central Bank
Source: NBC News/YouTube

The Fed chair is concerned about the national debt in the long run. However, he mentioned that members of the central bank’s rate-setting panel believe “the economy’s in a good place.”

Is There Hope for Economic Growth?

According to the Bureau of Economic Analysis, the economy bounced back strongly, growing at a rate of 3.3 percent in the fourth quarter of 2023. But that doesn’t mean it should relent. The situation calls for the urgent need for decisive action. 

The United States Economy
Source: Introbooks Education/YouTube

Continuous government operations and addressing broader issues like fiscal sustainability and national debt management are crucial for growth.

Inflation Affects Interest Rate Adjustments

According to The Hill, inflation has dropped from its highest point of 9% in the summer of 2022. This decline is credited to adjustments made by the Federal Reserve through its monetary policies.

A Picture Depicting Inflation
Source: Pinterest

The Fed raised interest rates from nearly zero in March 2022 to a range of 5.25 to 5.5 percent in June 2023. Since then, they have kept rates unchanged in subsequent meetings.

Powell Warned About Future Interest Rate Cuts

Top Federal officials hinted about potential rate cuts in 2024. However, contrary to expectations, they decided not to cut rates after the January meeting last Wednesday. Surprisingly, Powell had predicted that rate cuts in March were unlikely during a press conference after the announcement.

A Picture Depicting Interest Rates
Source: Basic Point/YouTube

“I would say, and I did say yesterday, that I think it’s not likely that this committee will reach that level of confidence in time for the March meeting, which is in seven weeks,” Powell said.

POLL — Is Artificial Intelligence a Net Positive or Negative for Mankind?

He Advised that Economic Conditions Be Considered for Decisions

Under Powell’s leadership, the Federal Reserve was more careful toward future interest rate cuts. He stated the importance of reviewing economic conditions before making any decisions. Powell also mentioned that key economic indicators affect the Federal Reserve’s decisions on interest rates.

Federal Chair Discusses Inflation
Source: Yahoo Finance/YouTube

“The kinds of things that would make us want to move sooner would be if we saw weakness in the labor market or if we saw inflation really persuasively coming down,” he added.

Powell and the Fed Have Been Accused of Being Political

Powell and the Fed have faced criticism from both sides of the political spectrum for their choice to maintain interest rates at their highest level in over two decades.

Powell and the Fed Have Been Accused of Being Political
Source: BBC News/YouTube

Former President Trump accused Powell of being “political.” Also, during a Fox Business interview on “Mornings with Maria”, Trump claimed that Powell would lower rates to benefit Democrats in the upcoming election. 

Trump Regularly Criticized Powell

“It looks to me like he’s trying to lower interest rates for the sake of maybe getting people elected, I don’t know,” he added. When asked if he would reappoint Powell if he won the election in November, Trump said, “No, I wouldn’t do that.”

Ex President Donald Trump
Source: The Telegraph/YouTube

Trump had pressured Powell to lower interest rates to boost the stock market and improve trade negotiations. It wasn’t new for Trump to always criticize Powell publicly.

ALSO READ: Biden Set to Launch Task Force to Fight “Unfair and Illegal Pricing” Amid Soaring Inflation

Democrats Also Weighed In on the Matter

Some Senate Democrats also encouraged the Fed chair to lower rates before last Wednesday’s meeting. Sens. Elizabeth Warren, John Hickenlooper, Jacky Rosen, John Hickenlooper, Jacky Rosen, and Sheldon Whitehouse wrote a letter to Powell last Sunday.

Democrats of the United States
Source: PBS NewsHour/YouTube

“As the Fed weighs its next steps in the new year, we urge you to consider the effects of your interest rate decisions on the housing market and to reverse the troubling rate hikes that have put affordable housing out of reach for too many,” 

Powell’s Stance on the Accusations

But, Powell rejected any suggestion that politics would influence the Fed’s decision to lower interest rates in the future. Despite the criticism, he reaffirmed the Federal Reserve’s independence.

Powell Warned About Future Interest Rate Cuts
Source: Bloomberg Television/YouTube

“We do not consider politics in our decisions. We never do. And we never will. And I think the record – fortunately, the historical record backs that up,” he said.

There’s an urgent call for fiscal responsibility

According to Business Insider, Powell emphasized the importance of being financially responsible and not passing on debt to future generations.  He said, “It should pay for those things and not hand the bills to our children and grandchildren.”

Jerome Powell
Source: Forbes Breaking News/ YouTube

Powell also called for “an adult conversation among elected officials” to guide the federal government toward a sustainable fiscal path.

You Might Also Like:

Autopsy Report Reveals LGBTQ Teen Nex Benedict Died by Suicide

Tyson Announces Plans to Hire NYC Immigrants for Jobs No One Else Wants

“Young Sheldon” Producer Vying to Guest Star Reba McEntire for Show’s Final Season

Former CNN Anchor Don Lemon Claims Elon Musk Canceled His New Show on X Before It Premiered

U.S. Judge Warns Public of Possible ‘Authoritarian’ Rule

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Previous ArticleSouth Carolina Governor Signs New Gun Law in Ceremonial Bill Signing
Next Article “Investigate More!” Kenan Thompson Breaks Silence on Allegations Against Dan Schneider

Related Posts

General

Jessica Alba Paid Tribute to Estranged Husband Cash Warren on First Father’s Day After Their Split

June 19, 2025
Entertainment

Justin Bieber Tweaks Instagram Post After Revealing Argument Amid Hailey’s Vogue Moment

May 26, 2025
Entertainment

Singer Chris Brown Arrested in the UK for an Alleged Assault Incident From 2023

May 20, 2025
Latest Posts

Exes Megan Fox and MGK Unveil Their Baby Girl’s Name Following ‘Celestial Seed’ Mix-Up

June 20, 2025

Jessica Alba Paid Tribute to Estranged Husband Cash Warren on First Father’s Day After Their Split

June 19, 2025

King Charles’ Father’s Day Message 2025: Subtle Nod to Prince Harry Sparks Speculation of Royal Reconciliation

June 18, 2025

Katy Perry and Orlando Bloom Facing Turbulent Times in Their Relationship

June 17, 2025

Teyana Taylor and Aaron Pierre Make Romance Official with a Kiss During His 31st Birthday Celebration

June 16, 2025

Miley Cyrus Opens Up About Healing ‘Messy’ Family Bonds After Years of Turmoil

June 13, 2025

DDG Files Restraining Order Against Halle Bailey

June 10, 2025

Cause of Death Revealed for Kylie Jenner’s Hairstylist Jesús Guerrero

June 5, 2025
About
About

We’re a news, entertainment and lifestyle hub that is dedicated to giving you quality insight on the latest lifestyle news, movie and TV news, celebrity news and lots more.

Contact us: info@gistfest.com

MOST POPULAR

Alina Nikitina: Everything We Know About the Russian Model

October 4, 2023

Jennifer Rauchet: Inside the Life of Pete Hegseth’s Wife

August 30, 2023

Jacob’s Ladder Piercing: All You Need To Know

July 21, 2023

Subscribe to Updates

Get the latest news delivered straight to your inbox!

Facebook X (Twitter) Instagram
  • Disclaimer
  • About us
  • Privacy Policy
  • Contribute & Advertise with Us
© 2025 GistFest. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.