Gold bull and economist Peter Schiff criticized Federal Reserve Chair Jerome Powell on Sunday for his remarks on the U.S. debt during Powell’s appearance on CBS News’ “90 Minutes.”
What Happened: In a post on X, Schiff argued that Powell did a “disservice to the nation” when he portrayed the national debt as a long-term problem for future generations to handle.
During the interview, when asked about the danger of the national debt to the economy, Powell acknowledged that the U.S. is on an unsustainable fiscal path, with the debt growing faster than the economy. He stated, “I don’t think that’s at all controversial. And I think we know that we have to get back on a sustainable fiscal path.”
Powell emphasized the importance of each generation paying for its needs instead of burdening future generations, stating, “We’re borrowing from future generations.”
Responding to these comments, Schiff criticized the Fed, stating, “Thanks to the #Fed, the debt is far larger and poses a much greater short-term threat to this generation.”
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Why It’s Important: The national debt has soared to $34.20 trillion, raising concerns about its impact on the economy, financial markets, and the global leadership role of the U.S.
Schiff had previously warned that 2024 could witness the largest one-year increase in U.S. debt and questioned the possibility of a sovereign debt or dollar crisis by the end of the year.
The SPDR S&P 500 ETF Trust SPY, an exchange-traded fund that tracks the broader S&P 500 Index, rose 1.25% to $494.3, according to data from Benzinga Pro.
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