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Powell Issues Stark Warning to Congress

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  • Powell Issues Stark Warning to Congress


    Federal Reserve Chairman Jerome Powell called on Congress to reduce the U.S. federal budget deficit to ensure the central bank could adequately respond to a financial crisis or recession.

    Powell told a House committee Tuesday that lawmakers should curb federal spending while the economy is running strong before a downturn forces Congress or the Fed to pump stimulus spending into the U.S.

    “Putting the federal budget on a sustainable path when the economy is strong would help ensure that policymakers have the space to use fiscal policy to assist in stabilizing the economy during a downturn,” Powell said Tuesday before the House Financial Services Committee.

    “A more sustainable federal budget could also support the economy’s growth over the long term.”

    Powell’s comments come one day after President Trump proposed a budget for fiscal 2021 with a $1 trillion deficit that puts the U.S. on track to balance its spending in 15 years. Those projections assume the economy growing at a far faster rate than predicted by most economists.

    Powell, a Republican widely seen as moderate, has frequently called on Congress to reduce the deficit throughout his tenure as Fed chairman. The Fed chief is among several policymakers and economists concerned about how a combination of low interest rates and high debt could hamstring policymakers if the economy slows down.
    https://thehill.com/policy/finance/4...ss-on-deficits
    "Those who would give up Essential Liberty to purchase a little Temporary Safety, deserve neither Liberty nor Safety."
    - Benjamin Franklin

    The new right wing: hate Muslims, preaches tolerance for Nazis.

  • #2
    And Congress responds...

    Comment


    • #3
      Powell is right.
      The GOP has failed to reduce spending, though I understand that Trump is calling for it in his new budget.

      If so, I am willing to bet the opposition party screeches how we can't cut spending.
      The GOP is afraid to cut spending the dems are afraid of failing to increase it.
      Avatar is General Gerard, courtesy of Zouave.

      Churchill to Chamberlain: you had a choice between war and dishonor. You chose dishonor, and you will have war.

      Comment


      • #4
        Originally posted by Cambronnne View Post
        Powell is right.
        The GOP has failed to reduce spending, though I understand that Trump is calling for it in his new budget.

        If so, I am willing to bet the opposition party screeches how we can't cut spending.
        The GOP is afraid to cut spending the dems are afraid of failing to increase it.
        The problem is that almost two-thirds of the budget is comprised of mandatory spending with automatic COLA increases built in. That leaves very little room to cut anything without Congress going in and passing legislation that cuts those mandatory programs.



        You can see the lie in this pie chart that's frequently used to represent the federal budget...



        It's starkly different from the budget as a whole.

        Comment


        • #5
          Originally posted by Cambronnne View Post
          Powell is right.
          The GOP has failed to reduce spending, though I understand that Trump is calling for it in his new budget.

          If so, I am willing to bet the opposition party screeches how we can't cut spending.
          The GOP is afraid to cut spending the dems are afraid of failing to increase it.
          The GOP has not been running Congress - the Dems have, and they've been busy trying to overthrow the American government while paying every illegal in America.

          And before you reply, Trump is an independent, NOT a Republican.
          Quis Custodiet Ipsos Custodes? Who is watching the watchers?

          Comment


          • #6
            Originally posted by Mountain Man View Post

            The GOP has not been running Congress - the Dems have, and they've been busy trying to overthrow the American government while paying every illegal in America.

            And before you reply, Trump is an independent, NOT a Republican.
            Source?
            "Those who would give up Essential Liberty to purchase a little Temporary Safety, deserve neither Liberty nor Safety."
            - Benjamin Franklin

            The new right wing: hate Muslims, preaches tolerance for Nazis.

            Comment


            • #7
              Originally posted by Mountain Man View Post

              The GOP has not been running Congress - the Dems have, and they've been busy trying to overthrow the American government while paying every illegal in America.

              And before you reply, Trump is an independent, NOT a Republican.
              Worry more what his golf trips are costing us.

              Your Trump is the one who said more than once that if he loses in the next election he won't step down. That is overthrowing our government Bubba.

              IF you believe all that you post then a sure sign that your getting very old
              "Ask not what your country can do for you"

              Left wing, Right Wing same bird that they are killing.

              you’re entitled to your own opinion but not your own facts.

              Comment


              • #8
                Originally posted by TactiKill J. View Post

                Source?
                The trout who swims against the current gets the most oxygen..

                Comment


                • #9
                  Originally posted by Mountain Man View Post

                  The GOP has not been running Congress - the Dems have, and they've been busy trying to overthrow the American government while paying every illegal in America.

                  And before you reply, Trump is an independent, NOT a Republican.
                  Trump ran as GOP and has gotten total support from the GOP Senate he is anything than Independent
                  "Ask not what your country can do for you"

                  Left wing, Right Wing same bird that they are killing.

                  you’re entitled to your own opinion but not your own facts.

                  Comment

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