Fed's Powell Says Only One Way To Resolve Debt Crisis — And Any Deviations 'Would Be Highly Risky'

Federal Reserve Chair Jerome Powell has asserted that resolving the debt ceiling crisis is Congress’ job and the central bank is not involved in any discussions regarding the matter.

“There's only one way forward here and that's for Congress to raise the debt ceiling so that the United States government can pay all of its obligations when due. Any deviations from that path would be highly risky. No one should assume that the Fed can protect the economy from the consequences of failing to act in a timely manner,” Powell said in a press conference, as per a video tweeted by Bloomberg Television.

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On being asked whether the Fed is actively doing any planning about the debt ceiling crisis, Powell said that it's really Congress' job to raise the debt ceiling. "I gather there are discussions happening. But they don't involve us. We are not involved in those discussions. We are the fiscal agent," he said.

Biden-McCarthy Meet: On Wednesday, President Joe Biden hosted House Speaker Kevin McCarthy in the Oval Office, where ‘they had a frank and straightforward dialogue’ according to a White House statement.

While the President and the Speaker agreed to continue the conversation, and McCarthy said the two of them could find common ground, there were no signs of an immediate breakthrough, reported Reuters. "The president and I had a good first meeting," McCarthy told reporters following the more-than-hour-long meeting, the Reuters report said.

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Photo via Federalreserve on Flickr