Federal Reserve Chairman Jerome Powell, billionaire investors Jeff Bezos and Ken Griffin, have agreed that the US must grow its way out of debt. The trio discussed the economy, inflation, and central banking at the 2024 DealBook Summit.
Powell expressed confidence in the American economy’s strength, citing higher-than-expected growth and lower-than-projected inflation. He noted that the economy is stronger than initially thought and that the downside risks in the labor market have moderated. However, he also warned of an “unsustainable path” for the federal deficit, emphasizing the need for change.
Bezos echoed this sentiment, stating that robust economic growth is the only way to tackle the $36 trillion national debt. He advocated for a GDP growth rate of 3-5% per year, allowing the national debt to grow slower.
Griffin also emphasized the importance of Fed independence, stressing its significance to maintaining the sanctity of the dollar. He argued that politics should not influence monetary policy decisions and that the central bank’s role is to make tough decisions for the benefit of all Americans.
The experts’ consensus underscores the growing acceptance that growth-focused policies are essential in addressing the US debt crisis. The Federal Reserve’s next policy decision is scheduled for December 18, with markets anticipating a quarter-point rate cut. However, the trio’s agreement suggests that the focus should shift to promoting economic growth rather than solely relying on interest rate cuts.
Source: https://www.inc.com/phil-rosen/economic-outlook-investors-markets-amazon-powell-bezos-griffin-traders-stocks/91035111