Fed chairman warns of ‘unthinkable’ harm if debt ceiling isn’t raised


Federal Reserve Chairman Jerome Powell said Thursday that the global economy could suffer “unthinkable” damage if the White House and Congress fail to raise the federal debt limit.

Testifying before the Senate Banking Committee, the Fed chairman said it was “essential” for Congress to raise the legal limit on the federal debt before the U.S. government defaults on its loans.

“We’ve always paid our bills, and it simply must happen that Congress raises the debt ceiling in time to allow that to happen,” Powell said.

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