Weatherhead’s Jonathan Ernest weighs in on Federal Reserve Chair Jerome Powell’s warning about the U.S.’s national debt

Powell’s deficit warnings jostle lawmakers, economists

The HillJonathan Ernest, an assistant professor at Weatherhead School of Management, said that Federal Reserve Chair Jerome Powell’s warning about the “unsustainable” national debt is raising questions about the depth of the country’s fiscal woes among some economists who see the Fed as part of the problem. “The breaking point would be if there are not enough people willing to lend funds to the U.S. government, or if borrowing becomes more risky to the point where the U.S. would have to pay an even higher premium, pay an actual risk premium, on money that’s being borrowed,” he said.