Wednesday, June 09, 2010

Bernanke Says the Federal Debt Is ‘Unsustainable’

The chairman of the Federal Reserve, Ben S. Bernanke, offered little comfort to Democrats or Republicans on policy recommendations, the New York Times is reporting. Mr. Bernanke warned everyone on Wednesday that “the federal budget appears to be on an unsustainable path.” He did, however, recognize that the “exceptional increase” in the deficit had been necessary to ease the recession. Mr. Bernanke also was quoted in the New York Times as saying, that he felt "increased taxes, cuts in spending that are too large, would be a negative, a drag on recovery."

Basically, Mr. Bernanke was telling the House Budget Committee so that everyone will understand they need to formulate a plan. He confirmed on Monday in a question –and –answer broadcast that, he, like Congress, was waiting for the outcome of a bipartisan fiscal commission appointed by President Obama before making policy recommendations.

Read the full article here.

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