Tag: Trump budget cuts

Fed Chair Powell warns Congress that $1 trillion budget deficits are unsustainable

Washington Post logoPowell also said it is ‘very likely’ the coronavirus will impact the U.S. economy, but it is too early to tell how much or for how long

Federal Reserve Board Chair Jerome H. Powell told Congress on Tuesday that now would be a good time to reduce the federal budget deficit, which is expected to top $1 trillion this year.

“Putting the federal budget on a sustainable path when the economy is strong would help ensure that policymakers have the space to use fiscal policy to assist in stabilizing the economy during a downturn,” Powell said in testimony to the House Financial Services Committee.

In past recessions, the Fed has played a large role in reviving the economy by sharply cutting interest rates. But Powell has been warning lawmakers that the central bank won’t have much ammunition left to fight the next downturn because interest rates are so low (the benchmark rate is just below 1.75 percent, far below rates above 5 percent in the past). Continue reading.

Trump would slash disaster funding to the very agencies he’s praising for Harvey response

The following article by Lisa Rein was posted on the Washington Post website August 29, 2017:

FEMA Administrator William B. “Brock” Long, center, speaks during a Hurricane Harvey update in Corpus Christi, Tex. (Jim Watson/Agence France-Presse/Getty Images)

As he toured rising floodwater in Texas on Tuesday, President Trump effusively praised his administration’s Hurricane Harvey response, an effort he began touting on Twitter last weekend even before the storm made landfall.

But not too long ago, the president proposed a budget calling for cuts to some of the federal government’s most consequential efforts to prepare states and local communities and help them recover from catastrophic events such as Harvey. Continue reading “Trump would slash disaster funding to the very agencies he’s praising for Harvey response”