Fed Chair Powell (Q&A) says it is not controversial that the path of US budget is unsustainable; the fiscal picture needs to be addressed

Fed Chair Powell (Q&A) says it is not controversial that the path of US budget is unsustainable; the fiscal picture needs to be addressed.

Fed Chair Powell's comments highlight the growing concerns about U.S. fiscal sustainability, which could have implications for future monetary policy. If the government’s budget trajectory remains unsustainable, it may prompt the Fed to adjust its interest rate strategy to tackle inflation or support economic stability. Expect potential volatility in the USD and fixed income markets as traders assess the implications for Fed policy moving forward.