Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Israeli media: One Israeli soldier killed in a "security incident" in Khan Younis, south of the Gaza Strip
Israeli media: Intense exchange of fire in Khan Younis
Israeli media platform reports on a tough incident in Gaza still under media censorship
Iran's judiciary says 71 killed in Israeli strike on Evin Prison
Trump: Make the deal, get the hostages back
Al Mayadeen's correspondent: 67 Palestinians were martyred in 24 hours in the Israeli aggression on the Gaza Strip
Israeli media: For the first time, Prime Minister Netanyahu is signaling that he wants to end the war on Gaza
Israeli Channel 12, citing an American source: We want to have entered a path toward captive release and a ceasefire before Netanyahu arrives in Washington
Lebanese Ministry of Health: One martyr and two injured in the Israeli airstrike that targeted a motorcycle in the town of Mahrouna
Al Mayadeen correspondent to Southern Lebanon: An Israeli drone strike targeted a vehicle between the towns of Jwayya and Mahrouna.

US national debt 'unsustainable', no good news in near future

  • By Al Mayadeen English
  • Source: Agencies
  • 5 Feb 2024 09:03
3 Min Read

Fed Reserve chief Jeremy Powell confirms that a rate cut is not likely to occur at the next rate-setting FOMC meeting in March as "debt grows faster than the economy."

  • x
  • Federal Reserve Board Chair Jerome Powell speaks during a news conference about the Federal Reserve's monetary policy at the Federal Reserve, Wednesday, Jan. 31, 2024, in Washington. (AP)
    Federal Reserve Board Chair Jerome Powell speaks during a news conference about the Federal Reserve's monetary policy at the Federal Reserve, Wednesday, Jan. 31, 2024, in Washington. (AP)

Federal Reserve chief Jerome Powell stated that the US national debt was on an "unsustainable" path, currently standing at more than $34 trillion, according to US Treasury data. 

In an interview aired Sunday with CBS' "60 Minutes" news program, Powell said, "In the long run... the US federal government's on an unsustainable fiscal path. And that just means that the debt is growing faster than the economy," while stressing that "it's probably time, or past time, to get back to an adult conversation among elected officials about getting the federal government back on a sustainable fiscal path."

This comes after the Federal Reserve voted last week to leave interest rates unchanged and said that "risks to achieving its employment and inflation goals are moving into better balance," eliminating possibilities of rate cuts.

"I do think it's pretty widely understood that it's time for us to get back to putting a priority on fiscal sustainability. And sooner's better than later."

Read more: National debt; American CEOs' biggest business threat for 2024

Powell continued to echo that stance, adding that a rate cut is not likely to occur at the next rate-setting Federal Open Market Committee (FOMC) meeting in March. "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."

Not better, but good enough to sustain?

Related News

Putin-Trump meeting in Istanbul requires mutual consent: Kremlin

Islamophobic attacks surge after Mamdani’s historic primary victory

Powell, responding to the question of conditions needed for a possible cut, said, "It doesn't need to be better than what we've seen, or even as good. It just needs to be good."

"The best we can do is to weigh the risk of moving too soon against the risk of moving too late and make that judgment in real-time. So that time is coming, I would say, based on what we expect," he added.

The benchmark interest rate is currently stable at its 23-year high, between 5.25 and 5.50 %.

Powell believes that inflation is expected to continue to slow down in the first half of 2024, and the interest rate target would then be reassessed in March.

"Nothing has happened in the meantime that would lead me to think that people would dramatically change their forecasts," he relayed to CBS.

The national debt in the US poses a problem that will spill over to other big economies relying on public borrowing to regulate inflation. Moreover, it leaves public services provided by the government, such as Medicare and Social Security, in an unknown grey area as the government could be faced with choices to prioritize certain services over others. 

Several headwinds will keep borrowing costs higher for a longer duration in the US. One of them is continued war spending. The government will likely borrow another $100 billion from investors to aid Ukraine and "Israel".

This implies that more bonds will be issued to the market, increasing the supply of US debt, and bond yields will remain high.

  • United States
  • national debt
  • Federal reserve
  • US debt
  • debt ceiling
  • US debt default
  • Jeremy Powell

Most Read

Iranian President Masoud Pezeshkian attends a protest following the US attacks on nuclear sites in Iran, in Tehran, Iran, Sunday, June 22, 2025. (AP)

Iran declares victory as ceasefire forces Israeli retreat

  • Politics
  • 24 Jun 2025
Iran launches strikes on Israeli targets, despite alleged ceasefire

Iran victorious as ceasefire with 'Israel' takes effect

  • Politics
  • 24 Jun 2025
The site of a direct missile strike launched from Iran in Tel Aviv on Sunday, June 22, 2025. (AP)

Op. True Promise 3, wave 21: Multi-warhead missiles rain on 'Israel'

  • Politics
  • 23 Jun 2025
Iran says targeted US Qatar air base under Op. Annunciation of Victory

Iran says targeted US Qatar air base under Op. Annunciation of Victory

  • MENA
  • 23 Jun 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Israeli media: Iran struck sensitive bases; only a fraction revealed
Politics

Only a fraction of Iranian missiles impact revealed: Israeli media

Pro-Palestinian protest in Sydney ends in crackdown, serious injury
Politics

Pro-Palestine Sydney protest ends in violent crackdown, serious injury

Israeli soldiers
Palestine

IOF soldiers blame army for negligence after deadly Khan Younis ambush

Corsican Assembly recognizes Palestine, condemns Israeli genocide
Politics

Corsican Assembly recognizes Palestine, condemns Israeli genocide

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS