Federal Reserve Chair Jay Powell has expressed concern about the United States’ high budget deficits, warning that the current level of spending is unsustainable given the strong economy and low unemployment rate. Powell emphasized the need to address fiscal imbalances “sooner rather than later,” noting that while the current debt level is manageable, the trajectory is not. His comments come amid growing worries about rising national debt, projected to reach 99% of GDP this year and potentially 122% by 2034. Powell’s statements highlight the tension between fiscal policy and monetary policy, especially as both major political parties seem unlikely to prioritize deficit reduction in the upcoming election.