Fed Chair Powell (Q&A) when asked about level of debt relative to GDP, says we don't know what the level of debt to GDP would be that would break public finances; level of debt is not unsustainable, it's the path of debt which is unsustainable

Fed Chair Powell’s comments underscore a concern about the trajectory of debt relative to GDP, indicating that while current levels may seem manageable, the sustainability hinges on future policy actions. The emphasis on the debt path signals to markets that proactive measures may be necessary to avert future financial stress, potentially influencing expectations around monetary policy and the USD's strength.