"We don't give advice to either side," Powell said. "We
would just point out that it's very important that this be done.
But the other point I'll make about that, though, is that no one
should assume that the Fed can protect the economy from the
potential, you know, short and long term effects of a failure to
pay our bills on time."
(Reporting by David Lawder
Editing by Chris Reese)
WASHINGTON, May 3 (Reuters) - The U.S. Federal Reserve
is unlikely to be able to shield the U.S. economy from the
fallout of a failure to raise the federal debt ceiling, and the
U.S. government should never be in a position where it is unable
to pay all of its bills, Fed Chair Jerome Powell said on
Wednesday.
Powell told a news conference after the Fed's latest rate
decision that resolving the debt ceiling standoff was a matter
for Congress and the Biden administration.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.