25 October 2023
Federal Reserve Chair Jerome Powell has expressed concerns over the U.S.’s escalating fiscal deficits and warned of its unsustainability. Despite his previous push for fiscal stimulus during the pandemic’s peak, Powell now remains largely silent on the ballooning federal deficit. This shift contrasts starkly from his 2020 stance, when he advocated for further financial stimulus to support the economy. The current deficit, reaching $2 trillion, poses significant concerns, influencing rising bond yields and market instability.