Fed's Powell Says U.S. Is on an Unsustainable Fiscal Path

The video discusses the increase in government debt to GDP since the Great Recession, highlighting the unsustainable fiscal path of the US due to expensive healthcare and an aging population. It explains that while these fiscal issues are significant, they do not currently impact the Federal Reserve's monetary policy, which focuses on managing interest rates to sustain economic recovery and prevent overheating.

In what ways do fiscal sustainability questions affect the Federal Reserve's approach to monetary policy?

What is the relationship between business cycle thinking and fiscal unsustainability?