Fed’s Powell Warns US Budget on ‘Unsustainable Path’

Federal Reserve Board Chairman Jerome Powell testifies before a House Financial Services Committee hearing on the Federal Reserve's Semi-Annual Monetary Policy Report, on Capitol Hill in Washington, on June 21, 2023. Stefani Reynolds/AFP via Getty Images

The U.S. budget is on an unsustainable path, which makes it crucial for policymakers to deal with it sooner rather than later, Federal Reserve Chair Jerome Powell told senators on June 22.

During Powell’s testimony before the Senate Banking Committee about his semi-annual monetary policy report, several Republican senators pressed him on the federal budget and its effect on inflation.