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Fed chair says US on 'unsustainable fiscal path' that should be dealt with soon

Jerome Powell
Posted at 6:52 PM, Feb 07, 2023

U.S. Federal Reserve Chair Jerome Powell said on Tuesday that the U.S. is "on an unsustainable fiscal path on the federal government level."

Powell made the comments while speaking at an event for The Economic Club in Washington, D.C.

The Fed chair said that it would be "better to deal with it sooner rather than later" when talking about the federal government's economic issues.

When asked what his biggest worry is about inflation, Powell said that while the country is "just at the beginning of this process" regarding controlling goods inflation, he is seeing improvements in the services sector.

Powell said consumers are starting to rotate back to purchasing services and not just goods as the country recovers from the COVID-19 pandemic.

Powell said the country needs home buying to come back and expects to see that start to pick up in the second half of this year.

He said "it's a risky world out there."