Powell’s Unlucky Fed Stares Into Default Oblivion

Jerome Powell, officially the least popular Fed chair since Gallup began tracking public confidence in Fed bosses more than two decades ago, is adamant: There's nothing he can do to protect the economy in the event the US were to default on its debt or other obligations. He'd probably say the same for markets, and I'd suggest that neither contention is entirely true. Obviously, the Fed couldn't offset the impact of what would count as one of the most egregious political debacles in modern Ameri

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2 thoughts on “Powell’s Unlucky Fed Stares Into Default Oblivion

  1. I do believe that the 14th amendment bars the debt limit. This strategy should be clearly and simply pursued. I’ve haven’t seen any polls yet on who will be blamed for a default. Last time, the Republicans were but a horrendously flawed rollout of the ACA changed the subject….

  2. I’m skeptical of the 14th Amendment route. That the government’s [existing] debt shall not be questioned is not the same as saying the government may incur [new] debt.

    I think the US government could, on X day, begin a shut down of functions other than debt service and military.

    Stop, let’s say, Social Security and Medicare benefits and how long will the political impasse endure?

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