Fed Chairman Powell says he is 'very worried' about growing amount of US debt

Well hell, the Fed should have been worried about this for the last 18 years. All of use should. Yet the vast majority of voters still vote for one of the two main parties, both of which are hell bent on adding to the debt. One more so than the other.

Federal Reserve Chairman Jerome Powell is concerned about the ballooning amount of United States debt.

"I'm very worried about it," Powell said at The Economic Club of Washington, D.C. "From the Fed's standpoint, we're really looking at a business cycle length: that's our frame of reference. The long-run fiscal, nonsustainability of the U.S. federal government isn't really something that plays into the medium term that is relevant for our policy decisions."


However, "it's a long-run issue that we definitely need to face, and ultimately, will have no choice but to face," he added.



The Fed chief's comments came as the annual U.S. deficit reaches new sustained highs above $1 trillion, a fact many economists worry could spell trouble for future generations. Annual deficits have topped $1 trillion before, but never during a time of sustained economic growth like now, raising concern about what would happen if a recession hits.


Total U.S. debt is about $21.9 trillion, of which $16 trillion is owed by the public. In part because of continued rate increases under Powell, the interest cost on that debt could start to become a bigger and bigger burden.