America’s national debt has crossed all imaginable boundaries, according to Federal Reserve Chairman Jerome Powell. Its colossal level has potentially devastating consequences for the economy, the Fed chief claimed, urging US authorities to start addressing the issue. "It's time for us to get back to putting a priority on fiscal sustainability," the head of the US central bank said.
"The US federal government is on an unsustainable fiscal path. And that just means that the debt is growing faster than the economy," Powell said, noting that the national debt issue should be front and center. "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," he added, stressing the need for long-term measures.
Earlier, on July 1, analysts William Ruger and Thomas Savage noted that increasing budget spending and the rapidly rising national debt could trigger serious problems in the US economy. The debt burden would have a direct impact on the country's defense capabilities, the experts said in an interview with The National Interest.
The International Monetary Fund has also highlighted this pressing issue, expressing confidence that the growing US national debt threatens the global economy. Preliminary forecasts indicate that the US national debt could exceed 140% of GDP by 2032. IMF analysts have called on American policymakers to consider raising indirect taxes and gradually increasing income taxes.
Former US President Donald Trump has raised awareness of the critical situation with the American national debt as well. According to the billionaire, US President Joe Biden does not have a handle on the economic situation in the country and has completely lost control over inflation, putting the national economy in jeopardy.
