Jerome Powell, the chairman of the US Federal Reserve, is very concerned about the fiscal future of the United States. American debt is rising faster than the country’s economic growth. He said this in an interview with 60 Minutes on Sunday.
The tax situation in the USA is very bleak
Powell is concerned and believes it is high time for politicians to begin “grown-up discussions” about reducing America’s skyrocketing debt.
“In the long term, the United States is on an unsustainable fiscal path. The United States government is on an unsustainable fiscal path. That means debt is growing faster than the economy.”
Powell said in the interview. Powell, together with the Federal Reserve, is responsible for, among other things, American interest rates. As is well known, interest rates have been relatively high for a long time. Interest rates are currently 5.25 – 5.50 percent.
March comes too early
The Fed was originally expected to cut interest rates in March. That won’t happen, Powell believes. In his opinion, there are not yet enough signs of economic strength to lead to a fall in interest rates.
“It is unlikely that the committee will gain this confidence before the March meeting, which takes place in seven weeks. We just want a little more confidence before we take the important step of cutting rates.”
According to Powell, he expects interest rates to be cut this year. But March is still a little too early for that. According to Powell, things will have to be very crazy if the Fed wants to cut interest rates in March.
“We would like to see action taken more quickly, such as a weakness in the labor market or falling inflation.”
The crypto world is eagerly waiting for the interest rate cut. A lower interest rate is an advantage for risk-taking investors financial assets like Bitcoin (BTC), Ethereum (ETH) or any other cryptocurrency.
Investing is much more attractive when interest rates are low. It is noteworthy that crypto assets and the stock markets have performed surprisingly well in recent months despite high interest rates.
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