Thank you stable genius Donald Trump ... Powell: U.S. debt is 'on unsustainable path,' ...

[Denizen]

"The debt is growing faster than the economy and that is unsustainable," Powell said.

That is evident to all rational people who are hoping the US Administration has more policies than Ivanka dreaming up 16 million jobs that will never exist.

The horse has bolted and debt is accelerating. The stable genius can't even find the stable door with both hands.

The US economy is on a path to a recession when debt is rising at around 2.5x GDP growth. Every announcement of a GDP increase will herald a 2.5x GDP growth increase in debt.

The stable genius is wallowing helplessly while his world collapses and the US economy craters.

Interest rates: Powell tells Congress federal debt is 'unsustainable'

Powell: U.S. debt is 'on unsustainable path,' crimping ability to respond to recession
Paul Davidson
USA TODAY

Powell: U.S. debt is 'on unsustainable path,' crimping ability to respond to recession
Paul Davidson
USA TODAY

Fed has cut its benchmark interest rate three times this year, leaving the central bank less room to lower rates further in case of a recession.

“The federal budget is on an unsustainable path, with high and rising debt,” Powell told the Joint Economic Committee. “Over time, this outlook could restrain fiscal policymakers’ willingness or ability to support economic activity during a downturn.”

Powell also reiterated that the Fed is likely done cutting rates unless the economy heads south.

"The outlook is still a positive one," he said. "There's no reason this expansion can't continue."

Powell gets more aggressive
The testimony marks a more aggressive tone for Powell, who generally has steered clear of lecturing lawmakers on the hazards of the federal deficit. But after raising its key rate nine times since late 2015, the Fed has lowered it three times this year to head off the risk of recession posed by President Donald Trump’s trade war with China and a sluggish global economy.

“Putting the federal budget on a sustainable path would aid in the long-term vigor of the U.S. economy and help ensure that policymakers have the space to use fiscal policy to assist in stabilizing the economy if it weakens,” Powell said.

He added, "How you do that and when you do that is up to you."

More rate cuts unlikely
Many economists are forecasting a recession next year, though the risks have eased now that the U.S. and China appear close to a partial settlement of their trade fight and the odds of a Brexit that doesn’t include a trade agreement between Britain and Europe have fallen.

Powell also said the Fed is unlikely to reduce interest rates further unless the economy weakens significantly – a message he delivered after the central bank trimmed its key rate for a third time late last month.

“We see the current stance of monetary policy as likely to remain appropriate" as long as the economy, labor market and inflation remain consistent with the Fed’s outlook, Powell said.

Since last month's Fed meeting, the government has reported that employers added 128,000 jobs in October – a surprisingly strong showing in light of a General Motors strike and the layoffs of temporary 2020 census workers.

"There's a lot to like about today's labor market," Powell said. He noted the 3.6% unemployment rate, near a 50-year low, is drawing Americans on the sidelines back into the workforce. And while average yearly wage growth has picked up to 3%, it's lower than anticipated in light of the low jobless rate. Inflation, he said, remains below the Fed's 2% target.

“Of course, if developments emerge that cause a material reassessment of our outlook, we would respond accordingly,” Powell said.

Sen. Ted Cruz, R-Texas, tried to coax the Fed chief into weighing in on the potential economic impact of "a massive tax increase," which some analysts say could be required by several Democratic presidential candidates' proposals for universal health care or free college tuition.

"I'm particularly reluctant to be pulled into the 2020 election," said Powell, a Republican and Trump appointee who has been repeatedly attacked by the president for not cutting interest rates more sharply.

warned lawmakers Wednesday that the ballooning federal debt could hamper Congress’ ability to support the economy in a downturn, urging them to put the budget “on a sustainable path.”
Powell suggested such fiscal aid could be vital after the Fed has cut its benchmark interest rate three times this year, leaving the central bank less room to lower rates further in case of a recession.
“The federal budget is on an unsustainable path, with high and rising debt,” Powell told the Joint Economic Committee. “Over time, this outlook could restrain fiscal policymakers’ willingness or ability to support economic activity during a downturn.”
Powell also reiterated that the Fed is likely done cutting rates unless the economy heads south.
"The outlook is still a positive one," he said. "There's no reason this expansion can't continue."
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Powell gets more aggressive
The testimony marks a more aggressive tone for Powell, who generally has steered clear of lecturing lawmakers on the hazards of the federal deficit. But after raising its key rate nine times since late 2015, the Fed has lowered it three times this year to head off the risk of recession posed by President Donald Trump’s trade war with China and a sluggish global economy.
Those developments have hurt manufacturing and business investment while consumer spending remains on solid footing.
The Fed’s benchmark rate is now at a range of 1.5% to 1.75%, above the near-zero level that persisted for years after the Great Recession of 2007-09 but below the 2.25% to 2.5% range early this year.
“Nonetheless, the current low-interest-rate environment may limit the ability of monetary policy to support the economy,” Powell said.
Noting the Fed has lowered its federal funds rate an average 5 percentage points in prior downturns, Powell said, "We don't have that kind of room." He added, "Fed policy will also be important, though," if the nation enters a recession. Fed officials have said they still have ammunition to fight a slump, including lowering rates and resuming bond purchases.
Deficit and debt worries
Meanwhile, the federal budget deficit hit $984 billion in fiscal 2019, the highest in seven years, and it’s expected to top $1 trillion in fiscal 2020. The federal tax cuts and spending increases spearheaded by Trump have added to the red ink and are set to add at least $2 trillion to the federal debt over a decade. The national debt recently surpassed $23 trillion.
"The debt is growing faster than the economy and that is unsustainable," Powell said.
President Donald Trump and Jerome Powell
He added that a high and rising federal debt also can “restrain private investment and, thereby, reduce productivity and overall economic growth.” That's because swollen debt can push interest rates higher.
Wealthy investors worry:More than half of high net worth investors bracing for stock drop
“Putting the federal budget on a sustainable path would aid in the long-term vigor of the U.S. economy and help ensure that policymakers have the space to use fiscal policy to assist in stabilizing the economy if it weakens,” Powell said.

He added, "How you do that and when you do that is up to you."
More rate cuts unlikely
Many economists are forecasting a recession next year, though the risks have eased now that the U.S. and China appear close to a partial settlement of their trade fight and the odds of a Brexit that doesn’t include a trade agreement between Britain and Europe have fallen.
Powell also said the Fed is unlikely to reduce interest rates further unless the economy weakens significantly – a message he delivered after the central bank trimmed its key rate for a third time late last month.
“We see the current stance of monetary policy as likely to remain appropriate" as long as the economy, labor market and inflation remain consistent with the Fed’s outlook, Powell said.
Since last month's Fed meeting, the government has reported that employers added 128,000 jobs in October – a surprisingly strong showing in light of a General Motors strike and the layoffs of temporary 2020 census workers.
"There's a lot to like about today's labor market," Powell said. He noted the 3.6% unemployment rate, near a 50-year low, is drawing Americans on the sidelines back into the workforce. And while average yearly wage growth has picked up to 3%, it's lower than anticipated in light of the low jobless rate. Inflation, he said, remains below the Fed's 2% target.
“Of course, if developments emerge that cause a material reassessment of our outlook, we would respond accordingly,” Powell said.
Sen. Ted Cruz, R-Texas, tried to coax the Fed chief into weighing in on the potential economic impact of "a massive tax increase," which some analysts say could be required by several Democratic presidential candidates' proposals for universal health care or free college tuition.
"I'm particularly reluctant to be pulled into the 2020 election," said Powell, a Republican and Trump appointee who has been repeatedly attacked by the president for not cutting interest rates more sharply.

The financial position of the United States includes assets of at least $269.6 trillion (1576% of GDP) and debts of $145.8 trillion (852% of GDP) to produce a net worth of at least $123.8 trillion (723% of GDP)[a] as of Q1 2014.

Financial position of the United States - Wikipedia

This was 2014. It is now 5 years later.
The net worth of the USA after subtracting national debt, and all other debt was in 2014... $123.8 trillion. Again subtracting National debt at that time of $17.8 trillion.
Today it is $22.6 trillion, a $4.8 trillion increase. OK... that means the net worth of all Americans & Businesses after paying off National debt is: $118 trillion. Geez.

The economy is going backward and accelerating.

Trump is a total moron and a criminal.

You wrote moments ago..The economy is going backward and accelerating.

Hmmm... Highest DJI in history... but economy going backward! Yea....

Friday provided (partial, at least) vindication. Mike Solon, a partner at US Policy Metrics, ran through the numbers in The Wall Street Journal on Monday, crediting the Trump tax cuts for what we’re now seeing.
“In the first five quarters of the Trump presidency, growth has been almost 40 percent higher than the average rate during the Obama years, and per capita growth in gross domestic product has been 63 percent faster,” Solon wrote.
Yes, Trump is Very Good for Your 401k (So Far)

Right NOW 11/15/19

View attachment 289963

You forgot to mention another major Trump achievement. 2019 is the highest year number ever to date.

 

[g5000]

"The debt is growing faster than the economy and that is unsustainable," Powell said.

That is evident to all rational people who are hoping the US Administration has more policies than Ivanka dreaming up 16 million jobs that will never exist.

The horse has bolted and debt is accelerating. The stable genius can't even find the stable door with both hands.

The US economy is on a path to a recession when debt is rising at around 2.5x GDP growth. Every announcement of a GDP increase will herald a 2.5x GDP growth increase in debt.

The stable genius is wallowing helplessly while his world collapses and the US economy craters.

Interest rates: Powell tells Congress federal debt is 'unsustainable'

Powell: U.S. debt is 'on unsustainable path,' crimping ability to respond to recession
Paul Davidson
USA TODAY

Powell: U.S. debt is 'on unsustainable path,' crimping ability to respond to recession
Paul Davidson
USA TODAY

Fed has cut its benchmark interest rate three times this year, leaving the central bank less room to lower rates further in case of a recession.

“The federal budget is on an unsustainable path, with high and rising debt,” Powell told the Joint Economic Committee. “Over time, this outlook could restrain fiscal policymakers’ willingness or ability to support economic activity during a downturn.”

Powell also reiterated that the Fed is likely done cutting rates unless the economy heads south.

"The outlook is still a positive one," he said. "There's no reason this expansion can't continue."

Powell gets more aggressive
The testimony marks a more aggressive tone for Powell, who generally has steered clear of lecturing lawmakers on the hazards of the federal deficit. But after raising its key rate nine times since late 2015, the Fed has lowered it three times this year to head off the risk of recession posed by President Donald Trump’s trade war with China and a sluggish global economy.

“Putting the federal budget on a sustainable path would aid in the long-term vigor of the U.S. economy and help ensure that policymakers have the space to use fiscal policy to assist in stabilizing the economy if it weakens,” Powell said.

He added, "How you do that and when you do that is up to you."

More rate cuts unlikely
Many economists are forecasting a recession next year, though the risks have eased now that the U.S. and China appear close to a partial settlement of their trade fight and the odds of a Brexit that doesn’t include a trade agreement between Britain and Europe have fallen.

Powell also said the Fed is unlikely to reduce interest rates further unless the economy weakens significantly – a message he delivered after the central bank trimmed its key rate for a third time late last month.

“We see the current stance of monetary policy as likely to remain appropriate" as long as the economy, labor market and inflation remain consistent with the Fed’s outlook, Powell said.

Since last month's Fed meeting, the government has reported that employers added 128,000 jobs in October – a surprisingly strong showing in light of a General Motors strike and the layoffs of temporary 2020 census workers.

"There's a lot to like about today's labor market," Powell said. He noted the 3.6% unemployment rate, near a 50-year low, is drawing Americans on the sidelines back into the workforce. And while average yearly wage growth has picked up to 3%, it's lower than anticipated in light of the low jobless rate. Inflation, he said, remains below the Fed's 2% target.

“Of course, if developments emerge that cause a material reassessment of our outlook, we would respond accordingly,” Powell said.

Sen. Ted Cruz, R-Texas, tried to coax the Fed chief into weighing in on the potential economic impact of "a massive tax increase," which some analysts say could be required by several Democratic presidential candidates' proposals for universal health care or free college tuition.

"I'm particularly reluctant to be pulled into the 2020 election," said Powell, a Republican and Trump appointee who has been repeatedly attacked by the president for not cutting interest rates more sharply.

warned lawmakers Wednesday that the ballooning federal debt could hamper Congress’ ability to support the economy in a downturn, urging them to put the budget “on a sustainable path.”
Powell suggested such fiscal aid could be vital after the Fed has cut its benchmark interest rate three times this year, leaving the central bank less room to lower rates further in case of a recession.
“The federal budget is on an unsustainable path, with high and rising debt,” Powell told the Joint Economic Committee. “Over time, this outlook could restrain fiscal policymakers’ willingness or ability to support economic activity during a downturn.”
Powell also reiterated that the Fed is likely done cutting rates unless the economy heads south.
"The outlook is still a positive one," he said. "There's no reason this expansion can't continue."
Don't idle:How often should I start my car in cold weather?
Death of retirement? The old work model is disappearing for boomers, Gen Xers
The auto industry is still a boys' club at the top despite GM CEO Mary Barra's success
WW, formerly Weight Watchers, unveils new plan with more choice, less hunger and, yes, pasta
Engage, ask questions and observe when investing in stock market
'Ford v Ferrari:' Cars from the upcoming movie take center stage
Medicare Part B premium 2020: Rates and deductibles rising 7% for outpatient care
Powell gets more aggressive
The testimony marks a more aggressive tone for Powell, who generally has steered clear of lecturing lawmakers on the hazards of the federal deficit. But after raising its key rate nine times since late 2015, the Fed has lowered it three times this year to head off the risk of recession posed by President Donald Trump’s trade war with China and a sluggish global economy.
Those developments have hurt manufacturing and business investment while consumer spending remains on solid footing.
The Fed’s benchmark rate is now at a range of 1.5% to 1.75%, above the near-zero level that persisted for years after the Great Recession of 2007-09 but below the 2.25% to 2.5% range early this year.
“Nonetheless, the current low-interest-rate environment may limit the ability of monetary policy to support the economy,” Powell said.
Noting the Fed has lowered its federal funds rate an average 5 percentage points in prior downturns, Powell said, "We don't have that kind of room." He added, "Fed policy will also be important, though," if the nation enters a recession. Fed officials have said they still have ammunition to fight a slump, including lowering rates and resuming bond purchases.
Deficit and debt worries
Meanwhile, the federal budget deficit hit $984 billion in fiscal 2019, the highest in seven years, and it’s expected to top $1 trillion in fiscal 2020. The federal tax cuts and spending increases spearheaded by Trump have added to the red ink and are set to add at least $2 trillion to the federal debt over a decade. The national debt recently surpassed $23 trillion.
"The debt is growing faster than the economy and that is unsustainable," Powell said.
President Donald Trump and Jerome Powell
He added that a high and rising federal debt also can “restrain private investment and, thereby, reduce productivity and overall economic growth.” That's because swollen debt can push interest rates higher.
Wealthy investors worry:More than half of high net worth investors bracing for stock drop
“Putting the federal budget on a sustainable path would aid in the long-term vigor of the U.S. economy and help ensure that policymakers have the space to use fiscal policy to assist in stabilizing the economy if it weakens,” Powell said.

He added, "How you do that and when you do that is up to you."
More rate cuts unlikely
Many economists are forecasting a recession next year, though the risks have eased now that the U.S. and China appear close to a partial settlement of their trade fight and the odds of a Brexit that doesn’t include a trade agreement between Britain and Europe have fallen.
Powell also said the Fed is unlikely to reduce interest rates further unless the economy weakens significantly – a message he delivered after the central bank trimmed its key rate for a third time late last month.
“We see the current stance of monetary policy as likely to remain appropriate" as long as the economy, labor market and inflation remain consistent with the Fed’s outlook, Powell said.
Since last month's Fed meeting, the government has reported that employers added 128,000 jobs in October – a surprisingly strong showing in light of a General Motors strike and the layoffs of temporary 2020 census workers.
"There's a lot to like about today's labor market," Powell said. He noted the 3.6% unemployment rate, near a 50-year low, is drawing Americans on the sidelines back into the workforce. And while average yearly wage growth has picked up to 3%, it's lower than anticipated in light of the low jobless rate. Inflation, he said, remains below the Fed's 2% target.
“Of course, if developments emerge that cause a material reassessment of our outlook, we would respond accordingly,” Powell said.
Sen. Ted Cruz, R-Texas, tried to coax the Fed chief into weighing in on the potential economic impact of "a massive tax increase," which some analysts say could be required by several Democratic presidential candidates' proposals for universal health care or free college tuition.
"I'm particularly reluctant to be pulled into the 2020 election," said Powell, a Republican and Trump appointee who has been repeatedly attacked by the president for not cutting interest rates more sharply.

The financial position of the United States includes assets of at least $269.6 trillion (1576% of GDP) and debts of $145.8 trillion (852% of GDP) to produce a net worth of at least $123.8 trillion (723% of GDP)[a] as of Q1 2014.

Financial position of the United States - Wikipedia

This was 2014. It is now 5 years later.
The net worth of the USA after subtracting national debt, and all other debt was in 2014... $123.8 trillion. Again subtracting National debt at that time of $17.8 trillion.
Today it is $22.6 trillion, a $4.8 trillion increase. OK... that means the net worth of all Americans & Businesses after paying off National debt is: $118 trillion. Geez.

The economy is going backward and accelerating.

Trump is a total moron and a criminal.

You wrote moments ago..The economy is going backward and accelerating.

Hmmm... Highest DJI in history... but economy going backward! Yea....

Friday provided (partial, at least) vindication. Mike Solon, a partner at US Policy Metrics, ran through the numbers in The Wall Street Journal on Monday, crediting the Trump tax cuts for what we’re now seeing.
“In the first five quarters of the Trump presidency, growth has been almost 40 percent higher than the average rate during the Obama years, and per capita growth in gross domestic product has been 63 percent faster,” Solon wrote.
Yes, Trump is Very Good for Your 401k (So Far)

Right NOW 11/15/19

View attachment 289963

The Dow on January 20, 2009: 7,550.29

The Dow in November 2011: 11,796

That's after DIVING down to 6626 due to the economy falling off a cliff as Obama took office.

Anyway, at this point in time in Obama's presidency, the Dow had climbed 56 percent.



The Dow on January 20, 2017: 19,827.25

The Dow today: 28,004.89

Trump's Dow has climbed only 41 percent.


Once again, the pseudocons are bitch slapped by their own standards.

MAGA!

 

[g5000]

Trump's trade war has increased our trade deficit with China to record levels.


And it has crushed the Dow flat for nearly two years.

Trump's bailout of the farmers who are being destroyed by the trade war is TWICE the auto bailout.


U.S. trade gap with China reaches all-time high under Trump

Trump's farm bailout has cost taxpayers more than double the auto bailout

 

[g5000]

If Trump had not started his far left protectionist tariff war, the Dow would be well above 30,000 by now, and the trade deficit with China would be much smaller rather than at the record high it is now.

Trump is an IDIOT!

 

[keepitreal]

And who increased it $9 TRILLION during his 8 years?

the guy that came before the guy that has increased it more than 3 trillion in less than 3 years....but that is ok to you because he has an (R) in front of his name.

Hmm, any clue how much Obamacare adds to the deficit?
Any clue how much is added to the deficit by immigrants?

 

[Harpy Eagle]

Hmm, any clue how much Obamacare adds to the deficit?
Any clue how much is added to the deficit by immigrants?

ObamaCare is supposed to cost the Govt 1.76 trillion over 11 years, or about 160 billion a year.

Illegal immigration cost us about 100 billion a year.

So, between the two we are looking at 260 billion.

The deficit over the last 356 days was about 1.3 trillion. So, those two items about for 12.3% of that deficit.

 

[keepitreal]

Hmm, any clue how much Obamacare adds to the deficit?
Any clue how much is added to the deficit by immigrants?

ObamaCare is supposed to cost the Govt 1.76 trillion over 11 years, or about 160 billion a year.

Illegal immigration cost us about 100 billion a year.

So, between the two we are looking at 260 billion.

The deficit over the last 356 days was about 1.3 trillion. So, those two items about for 12.3% of that deficit.

ROFLMFAO

No, obviously Obamacare and immigration
is costing more then they want us to know

 

[Harpy Eagle]

Hmm, any clue how much Obamacare adds to the deficit?
Any clue how much is added to the deficit by immigrants?

ObamaCare is supposed to cost the Govt 1.76 trillion over 11 years, or about 160 billion a year.

Illegal immigration cost us about 100 billion a year.

So, between the two we are looking at 260 billion.

The deficit over the last 356 days was about 1.3 trillion. So, those two items about for 12.3% of that deficit.

ROFLMFAO

No, obviously Obamacare and immigration
is costing more then they want us to know

you ask for answers and when given the answers you ignore them.

no fucking wonder you are a Trump worshiper.

 

[keepitreal]

Hmm, any clue how much Obamacare adds to the deficit?
Any clue how much is added to the deficit by immigrants?

ObamaCare is supposed to cost the Govt 1.76 trillion over 11 years, or about 160 billion a year.

Illegal immigration cost us about 100 billion a year.

So, between the two we are looking at 260 billion.

The deficit over the last 356 days was about 1.3 trillion. So, those two items about for 12.3% of that deficit.

ROFLMFAO

No, obviously Obamacare and immigration
is costing more then they want us to know

you ask for answers and when given the answers you ignore them.

no fucking wonder you are a Trump worshiper.

Revenue increased by 4% and spending by 7%
Social Security, Medicare and Medicaid increased 6%($105 Billion)
Interest on debt increased 14%( $52 Billion)
That interest is monthly, not annually
The interest is $52 Billion more a month then it was

So, what is Congress spending money on

 

[Zorro!]

Trump's trade war has increased our trade deficit with China to record levels.


And it has crushed the Dow flat for nearly two years.

The Dow is up 4600 points over the last two years.

 

[Zorro!]

Weird how so many folks carry water for the Chinese no matter what, it's almost like they are bought off or something.

CHINA PAYS TOP DOLLAR TO US-BASED SCIENTISTS FOR THEIR WORK: U.S. taxpayers are funding a significant part of the R&D costs for the Peoples’ Liberation Army in China. They do it through an innocuous sounding program, the Thousand Talents Program that pays bribes to scientists and other experts, including both foreign nationals working here in the states and U.S. citizens to transfer their work to China.

Sen. Rob Portman (R-Ohio), chairman of the Senate Homeland Security and Government Affairs Committee’s permanent investigations subcommittee, is hearing from the FBI and other federal agencies at a hearing this morning. They will be grilled about why China has been able to do this right under their noses, essentially without interference until last year, despite the fact TTP violates multiples U.S. laws, regulations and policies.

It makes a difference that Trump is President.

 

[ChemEngineer]

The stable genius is wallowing helplessly while his world collapses and the US economy craters.

Dow Jones Industrial Average just topped 28,000 for the first time.


"US economy craters"

Record black employment figures.

"US economy craters"

You're clearly a stable genius, Denizen.

"Elections have consequences. We won. You lost. Deal with it." - Barack Incompetent Obama

BarackObamaisms

Hateful Hillary

 

[MisterBeale]

"The debt is growing faster than the economy and that is unsustainable," Powell said.

That is evident to all rational people who are hoping the US Administration has more policies than Ivanka dreaming up 16 million jobs that will never exist.

The horse has bolted and debt is accelerating. The stable genius can't even find the stable door with both hands.

The US economy is on a path to a recession when debt is rising at around 2.5x GDP growth. Every announcement of a GDP increase will herald a 2.5x GDP growth increase in debt.

The stable genius is wallowing helplessly while his world collapses and the US economy craters.

Interest rates: Powell tells Congress federal debt is 'unsustainable'

Powell: U.S. debt is 'on unsustainable path,' crimping ability to respond to recession
Paul Davidson
USA TODAY

Powell: U.S. debt is 'on unsustainable path,' crimping ability to respond to recession
Paul Davidson
USA TODAY

Fed has cut its benchmark interest rate three times this year, leaving the central bank less room to lower rates further in case of a recession.

“The federal budget is on an unsustainable path, with high and rising debt,” Powell told the Joint Economic Committee. “Over time, this outlook could restrain fiscal policymakers’ willingness or ability to support economic activity during a downturn.”

Powell also reiterated that the Fed is likely done cutting rates unless the economy heads south.

"The outlook is still a positive one," he said. "There's no reason this expansion can't continue."

Powell gets more aggressive
The testimony marks a more aggressive tone for Powell, who generally has steered clear of lecturing lawmakers on the hazards of the federal deficit. But after raising its key rate nine times since late 2015, the Fed has lowered it three times this year to head off the risk of recession posed by President Donald Trump’s trade war with China and a sluggish global economy.

“Putting the federal budget on a sustainable path would aid in the long-term vigor of the U.S. economy and help ensure that policymakers have the space to use fiscal policy to assist in stabilizing the economy if it weakens,” Powell said.

He added, "How you do that and when you do that is up to you."

More rate cuts unlikely
Many economists are forecasting a recession next year, though the risks have eased now that the U.S. and China appear close to a partial settlement of their trade fight and the odds of a Brexit that doesn’t include a trade agreement between Britain and Europe have fallen.

Powell also said the Fed is unlikely to reduce interest rates further unless the economy weakens significantly – a message he delivered after the central bank trimmed its key rate for a third time late last month.

“We see the current stance of monetary policy as likely to remain appropriate" as long as the economy, labor market and inflation remain consistent with the Fed’s outlook, Powell said.

Since last month's Fed meeting, the government has reported that employers added 128,000 jobs in October – a surprisingly strong showing in light of a General Motors strike and the layoffs of temporary 2020 census workers.

"There's a lot to like about today's labor market," Powell said. He noted the 3.6% unemployment rate, near a 50-year low, is drawing Americans on the sidelines back into the workforce. And while average yearly wage growth has picked up to 3%, it's lower than anticipated in light of the low jobless rate. Inflation, he said, remains below the Fed's 2% target.

“Of course, if developments emerge that cause a material reassessment of our outlook, we would respond accordingly,” Powell said.

Sen. Ted Cruz, R-Texas, tried to coax the Fed chief into weighing in on the potential economic impact of "a massive tax increase," which some analysts say could be required by several Democratic presidential candidates' proposals for universal health care or free college tuition.

"I'm particularly reluctant to be pulled into the 2020 election," said Powell, a Republican and Trump appointee who has been repeatedly attacked by the president for not cutting interest rates more sharply.

warned lawmakers Wednesday that the ballooning federal debt could hamper Congress’ ability to support the economy in a downturn, urging them to put the budget “on a sustainable path.”
Powell suggested such fiscal aid could be vital after the Fed has cut its benchmark interest rate three times this year, leaving the central bank less room to lower rates further in case of a recession.
“The federal budget is on an unsustainable path, with high and rising debt,” Powell told the Joint Economic Committee. “Over time, this outlook could restrain fiscal policymakers’ willingness or ability to support economic activity during a downturn.”
Powell also reiterated that the Fed is likely done cutting rates unless the economy heads south.
"The outlook is still a positive one," he said. "There's no reason this expansion can't continue."
Don't idle:How often should I start my car in cold weather?
Death of retirement? The old work model is disappearing for boomers, Gen Xers
The auto industry is still a boys' club at the top despite GM CEO Mary Barra's success
WW, formerly Weight Watchers, unveils new plan with more choice, less hunger and, yes, pasta
Engage, ask questions and observe when investing in stock market
'Ford v Ferrari:' Cars from the upcoming movie take center stage
Medicare Part B premium 2020: Rates and deductibles rising 7% for outpatient care
Powell gets more aggressive
The testimony marks a more aggressive tone for Powell, who generally has steered clear of lecturing lawmakers on the hazards of the federal deficit. But after raising its key rate nine times since late 2015, the Fed has lowered it three times this year to head off the risk of recession posed by President Donald Trump’s trade war with China and a sluggish global economy.
Those developments have hurt manufacturing and business investment while consumer spending remains on solid footing.
The Fed’s benchmark rate is now at a range of 1.5% to 1.75%, above the near-zero level that persisted for years after the Great Recession of 2007-09 but below the 2.25% to 2.5% range early this year.
“Nonetheless, the current low-interest-rate environment may limit the ability of monetary policy to support the economy,” Powell said.
Noting the Fed has lowered its federal funds rate an average 5 percentage points in prior downturns, Powell said, "We don't have that kind of room." He added, "Fed policy will also be important, though," if the nation enters a recession. Fed officials have said they still have ammunition to fight a slump, including lowering rates and resuming bond purchases.
Deficit and debt worries
Meanwhile, the federal budget deficit hit $984 billion in fiscal 2019, the highest in seven years, and it’s expected to top $1 trillion in fiscal 2020. The federal tax cuts and spending increases spearheaded by Trump have added to the red ink and are set to add at least $2 trillion to the federal debt over a decade. The national debt recently surpassed $23 trillion.
"The debt is growing faster than the economy and that is unsustainable," Powell said.
President Donald Trump and Jerome Powell
He added that a high and rising federal debt also can “restrain private investment and, thereby, reduce productivity and overall economic growth.” That's because swollen debt can push interest rates higher.
Wealthy investors worry:More than half of high net worth investors bracing for stock drop
“Putting the federal budget on a sustainable path would aid in the long-term vigor of the U.S. economy and help ensure that policymakers have the space to use fiscal policy to assist in stabilizing the economy if it weakens,” Powell said.

He added, "How you do that and when you do that is up to you."
More rate cuts unlikely
Many economists are forecasting a recession next year, though the risks have eased now that the U.S. and China appear close to a partial settlement of their trade fight and the odds of a Brexit that doesn’t include a trade agreement between Britain and Europe have fallen.
Powell also said the Fed is unlikely to reduce interest rates further unless the economy weakens significantly – a message he delivered after the central bank trimmed its key rate for a third time late last month.
“We see the current stance of monetary policy as likely to remain appropriate" as long as the economy, labor market and inflation remain consistent with the Fed’s outlook, Powell said.
Since last month's Fed meeting, the government has reported that employers added 128,000 jobs in October – a surprisingly strong showing in light of a General Motors strike and the layoffs of temporary 2020 census workers.
"There's a lot to like about today's labor market," Powell said. He noted the 3.6% unemployment rate, near a 50-year low, is drawing Americans on the sidelines back into the workforce. And while average yearly wage growth has picked up to 3%, it's lower than anticipated in light of the low jobless rate. Inflation, he said, remains below the Fed's 2% target.
“Of course, if developments emerge that cause a material reassessment of our outlook, we would respond accordingly,” Powell said.
Sen. Ted Cruz, R-Texas, tried to coax the Fed chief into weighing in on the potential economic impact of "a massive tax increase," which some analysts say could be required by several Democratic presidential candidates' proposals for universal health care or free college tuition.
"I'm particularly reluctant to be pulled into the 2020 election," said Powell, a Republican and Trump appointee who has been repeatedly attacked by the president for not cutting interest rates more sharply.

 

[Denizen]

The stable genius is wallowing helplessly while his world collapses and the US economy craters.

Dow Jones Industrial Average just topped 28,000 for the first time.


"US economy craters"

Record black employment figures.

"US economy craters"

You're clearly a stable genius, Denizen.

"Elections have consequences. We won. You lost. Deal with it." - Barack Incompetent Obama

BarackObamaisms

Hateful Hillary

To reward devotees such as yourself, Donald Trump has declared 2019 as the highest year ever to date because of his genius.

 

[ChemEngineer]

To reward devotees such as yourself, Donald Trump has declared 2019 as the highest year ever to date because of his genius.

Socialists such as you vote for incompetents and crooks like Obama and Hillary.
I already provided you with websites exposing a tiny fraction of their corruption and stupidity.
Now it's time to rid myself of nonsense you peddle. Ignore List time for you.
ciao

 

[Denizen]

To reward devotees such as yourself, Donald Trump has declared 2019 as the highest year ever to date because of his genius.

Socialists such as you vote for incompetents and crooks like Obama and Hillary.
I already provided you with websites exposing a tiny fraction of their corruption and stupidity.
Now it's time to rid myself of nonsense you peddle. Ignore List time for you.
ciao

Ignorance is your finest quality.

 

[Zorro!]

To reward devotees such as yourself, Donald Trump has declared 2019 as the highest year ever to date because of his genius.

Socialists such as you vote for incompetents and crooks like Obama and Hillary.
I already provided you with websites exposing a tiny fraction of their corruption and stupidity.
Now it's time to rid myself of nonsense you peddle. Ignore List time for you.
ciao

For Example:

Clinton Foundation Files $16.8 MILLION Loss.

“Newly released tax records show that the foundation reported a loss of almost $17 million in 2018, to add to the net loss of $16.1 million the previous year in 2017.”​

Life gets pretty expensive when you have the spending habits of a plutocrat, but have run out of influence to peddle.