Fed Chair Powell: Debt Ceiling Should Be Raised in a Timely Way

The transcript discusses the potential economic effects of a debt limit standoff, emphasizing the importance of raising the debt ceiling to avoid unprecedented consequences. It highlights that fiscal policy matters are the responsibility of Congress and the administration. The Federal Reserve cannot protect the economy from the adverse effects of failing to pay bills on time, making it crucial to address the debt ceiling issue promptly.

What are the potential economic effects of approaching a default on the debt limit?

What role does Congress and the administration play in fiscal policy matters related to the debt ceiling?

Why is it essential for the debt ceiling to be raised in a timely manner?

What could be the consequences of failing to raise the debt ceiling?

How might the Federal Reserve be limited in protecting the economy from the effects of not paying bills on time?