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Powell: 'Not the time' to worry about debt
Jerome Powell, the Federal Reserve chair, recently expressed regret about America's failure to get its debt situation under control years ago.
"It tells you the importance of getting your fiscal house in order," Powell said during a press conference last week. "Ideally, you would go into an unexpected shock like this with a much stronger fiscal posture."
Yet Powell urged politicians not to worry about that now. "This is not the time to let that concern, which is a very serious concern, get in the way of us winning this battle," he said.
Worries about debt forced the United States to rein in spending shortly after the Great Recession a decade ago. Economists say that premature withdrawal of stimulus hobbled the economy.
"The anemic recovery was a direct result of not enough fiscal stimulus," said Kristina Hooper, chief global market strategist at Invesco.
The national debt has been on an unsustainable path for decades, in large part because of high entitlement spending on Social Security and Medicare.
Before the pandemic, Moody's forecast US debt would hit 100% of GDP in 2030. Now, it expects debt to stand at 128% of GDP by then.
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Posted by Erin Burnett to ANT at May 6, 2020 at 7:40 PM
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