He also calls America’s debt unsustainable.
Federal Reserve Chairman Jerome Powell said there is “a long way to go” before economic stability is achieved in the U.S. He acknowledged that the nation is in the “very early stages of disinflation.” He said many sectors of the marketplace, such as the services sector, still experience elevated inflationary levels and the road to economic recovery is “probably going to be bumpy.”
“We expect 2023 to be a year of significant declines in inflation. It’s actually our job to make sure that that’s the case,” Chairman Powell said. “My guess is it will take certainly into not just this year, but next year to get down close to 2 percent.”
The Fed chairman said the responsibility falls on Congress and the Treasury Department to address the debt ceiling. He expressed hope that Congress would vote to raise it so the government’s bills could be paid. However, he said, the federal government is on an “unsustainable fiscal path.”
Chairman Powell added, “That has been the case for some time, and it’s something we will have to deal with; it is better to deal with it sooner rather than later.”
As the Lord Leads, Pray with Us…
- For Chairman Powell and members of the Federal Reserve to seek God’s guidance as they set interest rates in response to inflationary trends.
- For Secretary Yellen as she heads the Department of Treasury and takes measures to fulfill U.S. obligations.
- For Speaker McCarthy and Leader Schumer as they address the debt ceiling and federal spending.
Sources: The Epoch Times, Wall Street Journal
