Powell Warns U.S. Debt Path ‘Not Sustainable,’ Says Risks Will ‘Not End Well’

Powell warned that while current U.S. debt levels remain manageable, the trajectory of federal borrowing is cause for concern.

“The level of the debt is not unsustainable, but the path is not sustainable,” Powell said, noting that government debt is growing faster than the broader economy — a dynamic he described as unsustainable in the long run.

Powell stressed that the issue falls outside the Fed’s mandate, but cautioned that inaction could carry consequences.

“It will not end well if we don’t do something fairly soon,” he said, adding that he typically limits himself to “high level points which essentially everyone ignores.”