The head of the Federal Reserve has warned the US economy is too strong to justify running such high deficits and urged Washington to address its fiscal imbalance “sooner rather than later”, in a sign of monetary policymakers’ rising concern about rampant government spending.
Powell, however, said: “There is a very broad support for an independent Fed in both political parties on both sides of Capitol Hill . . . where it really matters.” The Fed chair welcomed the recent fall in its preferred measure of US inflation to 2.6 per cent in May as “really good progress” but said it still wanted to see more evidence that price pressures and the labour market are cooling before it starts to cut interest rates.
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Source: TheEconomist - 🏆 6. / 92 Read more »