Through the first six months of fiscal 2021, the US government ran a record $1.7 trillion budget deficit. Federal Reserve Chairman Jerome Powell said this is sustainable – for now.
During a webinar sponsored by the Economic Club of Washington DC, Powell said the economy can handle the current debt load. But he did warn that the long-term trajectory of the US budget is unsustainable.
The US federal budget is on an unsustainable path, meaning simply that the debt is growing meaningfully faster than the economy. And that’s by definition unsustainable over time. It’s a different thing to say the current level of the debt is unsustainable. It’s not. The current level of debt is very sustainable. And there’s no question of our ability to service and issue that debt for the foreseeable future.”
Coinbase wows in Nasdaq debut amid cryptocurrency frenzy » Borneo Bulletin Online borneobulletin.com.bn - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from borneobulletin.com.bn Daily Mail and Mail on Sunday newspapers.
Provided by Dow Jones
By Paul Kiernan Federal Reserve Chairman Jerome Powell has worked hard to explain the central bank s policies to ordinary people, hoping to shore up trust at a time of wavering public faith in institutions. The effort has produced some unintended results. On Wednesday, for instance, Mr. Powell outlined the Fed s new policy of seeking inflation that temporarily overshoots its 2% target. For the last decade, you ve seen central banks around the world really struggle to reach a 2% goal, and in some cases are fighting outright deflation, Mr. Powell said in a virtual event with the Economic Club of Washington.
World stocks hit record high as bond yields ease reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.
(Bloomberg) Asian equities were muted at Thursday’s open after U.S. stocks closed off all-time peaks as a drop in cryptocurrency exchange Coinbase Global Inc. overshadowed strong bank earnings. Crude oil trimmed earlier gains. Shares were up slightly in Japan, little changed in South Korea and lower in Australia. U.S. contracts edged higher after a slide in technology shares pulled benchmarks off record levels. Coinbase traded down in its Nasdaq debut, and Bitcoin slid from its high. The S&P 500 Index fluctuated as traders tracked earnings from some of the world’s biggest banks, including revenue windfalls for Goldman Sachs Group Inc. and JPMorgan Chase & Co. Read: Coinbase Selloff After Trading Debut Spills Into Bitcoin Rally The dollar was little changed after three straight days of losses. Treasuries were also steady after slipping in U.S. hours, though the benchmark 10-year yield at 1.64% remains well off its highs. Traders in Asia will focus on the People’s Bank of China