Fed Worries Over Economic Risks From Prolonged Debt-Limit Talks
- Minutes of latest Fed meeting show discussion on debt limit
- Powell has said the only solution is for Congress to act
Jerome Powell during a news conference following a Federal Open Market Committee meeting in Washington, on Feb. 1.
Photographer: Al Drago/BloombergThis article is for subscribers only.
Federal Reserve policymakers at their most recent gathering discussed concerns about the potential for prolonged partisan wrangling over raising the federal debt limit to disrupt the economy and financial markets.
“A number of participants stressed that a drawn-out period of negotiations to raise the federal debt limit could pose significant risks to the financial system and the broader economy,” minutes of the Jan. 31-Feb. 1 Federal Open Market Committee meeting showed on Wednesday.