Fed's Powell takes old-school view on U.S. borrowing capacity

Federal Reserve Board Chairman Jerome Powell testifies before a Joint Economic Committee hearing on"The Economic Outlook" on Capitol Hill in Washington, U.S., November 13, 2019. REUTERS/James Lawler Duggan

Over the past year in particular, many mainstream economists have concluded that the current U.S. government debt level, north of $20 trillion and rising by $1 trillion a year, could grow much larger without crimping the economy - especially when the interest rate paid by the government is less than the economy’s growth rate on an inflation-adjusted basis, as it is now.

That conclusion, however, is not considered as clear-cut as it might have been when Powell worked on debt and deficit issues for the Bipartisan Policy Center think tank, before joining the U.S. central bank in 2012.

Savings are actually nil for half the population. The whole country is on a credit binge and he goes and fools people that savings are causing low inflation!

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Source: Reuters - 🏆 2. / 97 Read more »