"We shouldn't even be talking about a world in which the U.S. doesn't pay its bills. It just shouldn't be a thing," Powell said. "No one should assume that the Fed can… really protect the economy and the financial system, and our reputation globally, from the damage such an event might inflict."

The government just released the latest report on inflation. CBS News Business Analyst Jill Schlesinger helps break down the report showing a decline for the first time since June 2021.

Inflation cooled to 4.9% in April

Excluding volatile food and energy categories, core CPI rose 0.4% monthly and 5.5% from a year ago. That was in line with economists' expectations.

While inflation is slowing, it is still well above the Federal Reserve's target of 2%.

• • Sales slipped 0.7%
• • Existing home sales 4 MM
• • Median sales price $359,000 Up 1.3% from a year ago
• • Inventory of unsold homes up from prior month
• • More From the National Association of Realtors

"Generally speaking, food inflation has been the most stubborn of the categories," Walmart U.S. CEO John Furner told analysts and investors on the call.