Fed Chair Urges Congress to Raise Debt Limit as Government Risks Default

Federal Reserve Board Chairman Jerome Powell arrives for testimony before the Senate Banking, Housing and Urban Affairs Committee in Washington, DC on July 11, 2019. Win McNamee/Getty Images

WASHINGTON—Federal Reserve Chairman Jerome Powell urged Congress to raise the federal debt ceiling “in a timely way” to avoid “highly unpredictable” damage to the economy.

In testimony before the Senate Banking Committee on July 11, Powell said it’s “essential” for lawmakers to raise the debt limit so the U.S. government can pay its bills on time.