By: Brian Evans

Federal Reserve Chairman Jerome Powell said Tuesday that the idea that government deficits don’t matter, an idea endorsed most prominently by outspoken Rep. Alexandria Ocasio-Cortez, D-N.Y., is “just wrong.” The Fed Chair said…

“The idea that deficits don’t matter for countries that can borrow in their own currency I think is just wrong. U.S. debt is fairly high as a level of [economic output] and more important than that, it’s growing faster than economic output. We’re going to have to either spend less or raise more revenue.”

Powell also slammed the suggestion that the Federal Reserve could pay for the “Green New Deal”, as it comes with a price tag of at least $95 Trillion, which is more than $600,000 per American household! He said…

“To the extent, people are talking about using the Fed, our role is not to provide support for particular policies.”

Instead, he noted, the Fed’s mandate is to ensure low unemployment and stable prices. Also, the Fed Chairman expressed his concerns for the Democrats Modern Monetary Theory, which is an economic theory that says economies should rely on spending and tax decisions, rather central bank monetary policy, to stabilize economies in times of crisis. Also, Democrats have used the MMT theory for an excuse for deficit spending, and Powell replied…

“I haven’t really seen a carefully worked out description of what is meant by MMT … it may exist but I haven’t seen it. I heard some pretty extreme claims attributed to that framework, and I don’t know whether that’s fair or not.”

Powell also expressed his concerns over the growing US debt, and voiced his concerns about deficit spending that the Democrats are embracing and further pushing for!

Reports indicate that the Federal Reserve Chairman will have the opportunity to voice his concerns directly to Ocasio Cortez and her Democrat Party, as he is set to appear before the House Financial Services Committee on Wednesday, which is a panel that Alexandria Ocasio-Cortez is currently sitting on.

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