---
title: "Federal Reserve Chief Sounds Alarm Over Debt Amid Trump’s Tax Cut Push"
publisher: "Share Talk"
author: "sharetalk"
published: "2025-07-01T14:57:15+00:00"
modified: "2025-07-01T14:57:15+00:00"
date: 2025-07-01
canonical: "https://www.share-talk.com/federal-reserve-chief-sounds-alarm-over-debt-amid-trumps-tax-cut-push/"
category: "B2B"
categories: ["B2B", "Blogs", "Business & Support Services", "Technology", "Technology, Media & Telecoms"]
tags: ["Christine Lagarde", "European Central Bank", "Fed", "Federal Reserve", "Interest rates", "Jerome Powell", "President Donald Trump", "US Debt Path", "USA"]
image: "https://i0.wp.com/www.share-talk.com/wp-content/uploads/2025/05/FED-7-MAY.webp?fit=1200%2C800&quality=80&ssl=1"
format: "news"
language: "en-GB"
---

# Federal Reserve Chief Sounds Alarm Over Debt Amid Trump’s Tax Cut Push

**Published:** July 1, 2025
**Author:** sharetalk
**Categories:** B2B, Blogs, Business & Support Services, Technology, Technology, Media & Telecoms
**Tags:** Christine Lagarde, European Central Bank, Fed, Federal Reserve, Interest rates, Jerome Powell, President Donald Trump, US Debt Path, USA
**Featured image:** ![](https://i0.wp.com/www.share-talk.com/wp-content/uploads/2025/05/FED-7-MAY.webp?fit=1200%2C800&quality=80&ssl=1)

---

**Fed Chair Warns US Debt Path ‘Not Sustainable’ as Trump Pushes Tax Cuts**

Federal Reserve Chair **Jerome Powell** has issued a stark warning over America’s growing debt burden, as lawmakers debate **President Donald Trump’s sweeping tax-cut package**.

Speaking at the **ECB’s annual forum in Sintra**, Powell initially declined to comment directly on fiscal policy but reiterated a long-standing concern:

> “The US federal fiscal path is not a sustainable one. The level of the debt is sustainable, but the path is not—and we need to address that sooner or later. Sooner is better than later.”

His comments come as the **Senate considers Trump’s “One Big Beautiful Bill”**, a proposal that promises substantial tax cuts for individuals and businesses, but could add an estimated **$3.3 trillion** to the federal deficit over the next decade. The legislation would push the national debt—already exceeding **$37 trillion**—even higher.

The remarks underscore growing unease among policymakers about long-term fiscal risks, even as the administration presses ahead with measures designed to stimulate short-term growth.

**US on Unsustainable Debt Path, Warns Fed Chair Powell**

Federal Reserve Chair **Jerome Powell** has warned that the United States is on an unsustainable fiscal trajectory, as the **Senate debates President Donald Trump’s proposed tax-cut legislation**.

Speaking at the **European Central Bank’s annual forum in Sintra**, Powell reiterated concerns about the long-term direction of U.S. public finances. While initially declining to comment on specific fiscal measures, he emphasized:

> “The U.S. federal fiscal path is not a sustainable one. The level of the debt is sustainable, but the path is not—and we need to address that sooner or later. Sooner is better than later.”

His remarks come as lawmakers weigh the impact of **Trump’s “One Big Beautiful Bill”**, which aims to deliver broad tax cuts for Americans but could **add an estimated $3.3 trillion to the federal deficit** over the next decade. The proposal would push the **national debt—already at $37 trillion—even higher**.

Powell’s warning echoes those of his predecessors and highlights growing concern within financial circles about the long-term consequences of persistent deficit spending, even as the U.S. pursues policies designed to stimulate economic growth.

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