Fed Chair Jerome Powell warns about defaulting on US debt payments

New concerns are emerging over the possibility of the debt ceiling impacting the credit rating of the United States.

Federal Reserve Chair Jerome Powell told lawmakers on Capitol Hill Wednesday that the nation's credit rating could be at risk if the debt concerns aren't addressed.

"We've never failed to pay all of our bills when due. That can never happen, that's not something we can allow to happen,” he said. “I think our credit rating and our credit as a country is such an important asset that we have to stop short of letting that happen.”

Powell warned that there could be bad consequences if the U.S. was to default on its payments.

“The fiscal deficit is probably the number one unaddressed public policy issue in this country. Congress really is whistling past the graveyard,” Robert Grady, former George H.W. Bush OMB deputy director, told FOX Business’ Neil Cavuto on Wednesday.

Grady also cautioned entitlements are a growing and devastating problem.

"You can't have Medicaid growing at three times the rate of the U.S. economy and think that's sustainable," he said.


The U.S. Treasury Department could run out of money by the end of September unless the Congress takes action to either extend the suspension of debt limit or increase the limit, the Congressional Budget Office warned Tuesday.