In a downturn, it would also be important for fiscal policy to support the economy. However, as noted in the Congressional Budget Office's recent long-term budget outlook, the Federal budget is on an unsustainable path with high and rising debt.
Powell highlights the need for fiscal policy support amid rising national debt.
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What keeps me awake at night is how do we get that done? I want to hand over to my successor an economy in good shape, and so do all of my colleagues, that's all we ever want.
It is a big risk to our independence if we were to stray into areas where we shouldn’t that really aren’t part of our mandate.
Job growth, he said, has slowed considerably and that the downside risks to employment are rising.
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