The U.S. budget is on an unsustainable path, and it is crucial for policymakers to deal with it sooner rather than later, Federal Reserve Chair Jerome Powell told Senate lawmakers.
Powell appeared before the Senate Banking Committee for his semi-annual monetary policy report, and several Republican senators pressed the Fed Chair on the federal budget and its impact on inflation.
Sen. Tim Scott (R-S.C.), a Ranking Member on the committee, noted that the actions Congress takes “impacts significantly what you’ve had to do in order to slow down Biden’s absolutely explosive inflation.”
The central bank chief stopped short of critiquing fiscal policy, but he did concede that the federal budget “is on an unsustainable path.”…