Fed's Powell says there's only one way to solve the debt crisis - and any deviation 'would be very risky'

Federal Reserve Chairman Jerome Powell has asserted that resolving the debt ceiling crisis is the job of Congress and the central bank is not involved in any discussions about it.

“There is only one way forward here and that is for Congress to raise the debt ceiling so that the United States government can pay all its bonds at maturity. Any deviation from this path would be very risky. No one should assume the Fed can shield the economy from the consequences of not acting in a timely manner,” Powell said at a press conference, according to video tweeted by Bloomberg Television.

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When asked if the Fed was actively planning for the debt ceiling crisis, Powell said it was really Congress's job to raise the debt ceiling. "I guess there are ongoing discussions. But they don't involve us. We are not involved in those discussions. We are the fiscal agent," he said.

Biden-McCarthy meeting: On Wednesday, Speaker Joe Biden welcomed Speaker of the House Kevin McCarthy to the Oval Office, where "they had a frank and direct dialogue", according to a statement from the White House.

While the president and president agreed to continue the conversation and McCarthy said they could find common ground, there was no sign of a breakthrough immediate, Reuters reported. "The president and I had a good first meeting," McCarthy told reporters after the more than hour-long meeting, according to the Reuters report.

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Photo via Federalreserve on Flickr

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