WASHINGTON—Federal Reserve Chairman Jerome Powell said that the federal government can manage its debt at current levels but fiscal-policy makers should seek to slow its growth once the economy is stronger.


Congress and the White House have provided trillions of dollars of federal financial assistance since the Covid-19 pandemic hit the U.S. economy early last year, triggering a deep recession and uneven recovery. The resulting government budget deficits are expected to push the federal debt to 102.3% of gross domestic product by the end of the current fiscal year, up from 79.2% at the end of 2019, according to the Congressional Budget Office.

The CBO forecasts the debt will grow to 107% of GDP by 2031.

While a series of Covid-19 relief packages were passed in 2020 with strongly bipartisan support, GOP lawmakers have criticized President Biden’s $1.9 trillion assistance package, saying its measures are less targeted than previous bills and that the economy is already recovering.

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