Fed Chair Powell warns Congress that $1 trillion budget deficits are unsustainable

[Zorro]

Source: Washington Post

Federal Reserve Board Chair Jerome H. Powell told Congress on Tuesday that now would be a good time to reduce the federal budget deficit, which is expected to top $1 trillion this year.

“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 in testimony to the House Financial Services Committee.

In past recessions, the Fed has played a large role in reviving the economy by sharply cutting interest rates. But Powell has been warning lawmakers that the central bank won’t have much ammunition left to fight the next downturn because interest rates are so low (the benchmark rate is just below 1.75 percent, far below rates above 5 percent in the past).

More government spending is likely to be needed to aid the economy in the next recession.

Read more: https://www.washingtonpost.com/business/2020/02/11/fed-chair-powell-warns-congress-that-1-trillion-budget-deficits-are-unsustainable/

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Budget deficits will be a tremendous Republican concern after the next Democratic president is elected.

[The Blue Flower]

1. That's how they'll justify cutting SS and Medicare

Classic r game plan.

[MFGsunny]

3. This! Oldest Repuke Robin Hood Scam n/t

[rampartc]

4. +1

[bronxiteforever]

6. +1000

[CrispyQ]

7. This is one of Luck's best. Although he has so many good ones...

[ChiTownDenny]

18. +1

Excellent!

[ffr]

2. Obama handed the rePuticans/tRump 3.1% deficit/GDP. Now it's 5.1%

Democrats have a proven record on fiscal responsible economy policy, paying down debt, keeping our house in order. Republicans, like drunken sailors, spend the built up economic prosperity they inherit from Democratic administrations in the form of tax cuts for the wealthiest corporations, deficits soar.

See for yourself ==> https://www.democraticunderground.com/100212977780

[groundloop]

8. Yes, and I doubt if we can break the cycle anytime soon because America has a short memory span

Most voters can't (or refuse to) remember what a mess we were in when President Obama took office. They won't acknowledge that our relative prosperity now is a result of President Obama's policies, instead they allow tRump to take credit. The economy WILL crash under tRump, and we'll be right back where we were.

[groundloop]

5. tRump and Moscow Mitch had this all planned out when they cut taxes for the top 1%

Pay for their giveaway to the rich on the backs of those of us who depend on Social Security, Medicare, and Medicaid. Typical fucking goper bullshit.

We need to be raising holy hell about the fact that this is a direct result of their giveaway to the rich.

[CountAllVotes]

9. Hey Mr. Powell

Why don't you pass this on to your boss man #fatdonnie ?

Dump tRUMP !!!!!!

& recommend !!

[C_U_L8R]

10. GOP policy and mal-governance is what's unsustainable.

Republicans aren't conservative in the slightest when it comes to stuffing their pockets and driving up the deficit. These clowns have no fiscal responsibility at all.

[rurallib]

11. And start the clock on Powell's firing as head of the fed

How dare he question the stable genius?

?1477457240

[bronxiteforever]

12. The fed is a wholly owned subsidiary of Trump Inc

[DrToast]

25. No, he just said the deficit is unsustainable and he's right

[bronxiteforever]

26. No you are wrong about Powell.

[DrToast]

27. Oh well who can argue with that

[IronLionZion]

13. The answer is more tax cuts

then more budget cuts. Rinse and repeat. Then blame the Dems because government isn't helping people.

If/when Dems retake control this November, the GOP will be deeply concerned about the debt/deficit 24/7.

[Scarsdale]

21. If every elegible voter gets out to vote

there should be fewer gop members left in government. Once democratic representatives are in charge, SANITY can prevail. Adults will do a much better job than the frat boys of the gop.

[Wuddles440]

23. True....

but that's assuming that there will be little or no election malfeasance. The reThugicans are masters of voter suppression and political dirty tricks. Actively interfering in elections become has become such a critical element to their retaining power that they don't even bother trying to be covert about it anymore.

[DallasNE]

14. Anybody With A Working Brain

Understands and knows this but not a single Republican can get it through his head so here we are. And tariffs are just another headwind for the economy, which is now expected to only grow at 1.2% this quarter. And to think, Powell is Trump's own man.

[bucolic_frolic]

15. Trickle down, vacuum up! Money and power to the 1% /nt

[machoneman]

16. One other issue: our long overdue recession needs to start now in 2020 BEFORE the election or....

..the R-Scums will bleat to high heaven that a duly elected Democrat was totally reponsible.

Sorry, but no matter who is/was president here in early 2020, this sustained economic boom, started under our last real President Obama, is bound to end in some form of recession. It's an economic trend that's been repeated often over decades as the experts attest.

I'll be damned if it occurs in 2021-2022 as the R-Scums will beat their gums (to death I hope) over how they were wholly blameless.

[cstanleytech]

17. Cut the defense department by 40% which means we will only be spending

what the top 5 other high defense spending countries combined are spending would help a lot.

[sakabatou]

19. Republicans don't give a shit

As long as it'll hurt a Dem, they don't care.

[Grins]

20. GOP: "Time for a tax cut!" NM

[zentrum]

22. They're setting up the "emergency" cut to SS and...

....Medicare and Medicaid.

[olddad65]

24. Music to Trump's Daddy Vladdy's ears.

Good job comrade Donald.

[lindysalsagal]

28. "Now would be a good time"

like,

"Now would be a good time to get off the mountain because the avalanche just started...."