""The level of the debt is not unsustainable, but the path is not sustainable. It will not end well if we don't do something fairly soon.""
""What's clear is that our debt is growing much faster; the federal government debt is growing substantially faster than our economy. And that ratio is going up.""
""Net interest payments on the national debt are now projected to exceed $1 trillion in fiscal year 2026-nearly triple the $345 billion the government paid in 2020.""
Jerome Powell stated that while the current $39 trillion debt is not immediately dangerous, the trajectory is unsustainable. He emphasized the need for urgent legislative action. Powell noted that the U.S. can manage a large debt due to its status as the world's reserve currency issuer. However, he warned that the federal government debt is growing much faster than the economy, leading to an increasing debt-to-GDP ratio. Net interest payments on the national debt are projected to exceed $1 trillion by fiscal year 2026.
Read at Fortune
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