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.

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