Yellen: Congress Should Factor National Debt into Policy Decisions
During testimony before Congress on Wednesday, Federal Reserve Chair Janet Yellen emphasized the need for lawmakers to consider the rising national debt — and its unsustainable trajectory — when considering policy choices.
In response to a question about the financial risks posed by the national debt from Congressman Steve Pearce (R-NM), Yellen said:
"Let me state in the strongest possible terms: I agree that what you're showing here represents a trend that, given current spending and taxation decisions, is going to lead to an unsustainable debt situation, with rising interest rates and declining investment in the United States that will further harm productivity growth and living standards. I believe a key thing that Congress should be taking into account when designing fiscal policy is the need to achieve sustainability of this debt path over time.”
Watch a clip of the full exchange above, or learn more about the key drivers of our growing debt.
Photo by Zach Gibson/Getty Images
Further Reading
News from the Quarterly Treasury Refunding Statement
The Treasury anticipates borrowing $1,597 billion over the next two quarters. This would be $215 billion more debt than it issued during the same period last year.
What Are Interest Costs on the National Debt?
Interest costs are on track to become the largest category of spending in the federal budget.
Healthcare Costs Are a Major Driver of the National Debt and Here’s the Biggest Reason Why
Improving the U.S. healthcare system will be crucial to providing quality, affordable healthcare and to bettering our nation’s long-term economic and fiscal well-being.