Fears that mounting levels of federal debt will force the Federal Reserve into inflationary policies are probably overwrought, Fed Governor Jerome Powell said Friday.

Although the federal government needs to begin "now" to bring deficit spending and in turn the ratio of debt to GDP under control, "fiscal dominance" of monetary policy should not be seen as a big near-term risk, Powell said in prepared remarks at a Monetary Policy Forum sponsored by the University of Chicago's Booth School of Business School.

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