Federal Reserve Chairman Ben Bernanke warned on Wednesday that rising U.S. debt was contributing to a spike in longer-term interest rates, and said now was the time to start working on reining in deficits.
He gave no clue as to whether the U.S. central bank would step up its purchases of government debt or mortgage-backed securities to offset the rising borrowing rates, something investors have been watching for.
“Maintaining the confidence of the financial markets requires that we, as a nation, begin planning now for the restoration of fiscal balance,” Bernanke said in testimony prepared for delivery to the House of Representatives’ Budget Committee.
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“Unless we demonstrate a strong commitment to fiscal sustainability in the longer term, we will have neither financial stability nor healthy economic growth,” he said.
Bernanke gave a relatively upbeat assessment of the economy, saying he still expected the recession to bottom out and growth to resume later this year.
June 3rd, 2009 at 12:09 pm
I sense Bernake just trying to cover his ass. he knows the Titanic is going down and doesn’t want his reputation destroyed. Of course it’s too late for that. Poeple are even waking up to Greenspan’s BS
Sui Juris Reply:
June 4th, 2009 at 11:15 am
What will he need his reputation for when the titanic sinks to the bottom of a $12 trillion abyss…..?
June 3rd, 2009 at 2:45 pm
“reining in deficits” What a joke! Giving away money to bankers and bankrupt companies is the name of this game, and they expect it.
When they can’t borrow any more, we head for 1933.
June 3rd, 2009 at 9:20 pm
Hmm well couldn’t the Fed just uhm.. I don’t know… NOT print money for the Congress to cover the defecit or refuse to raise the debt ceiling? Or maybe at least they could stop buying the Treasury notes themselves, which is highly inflationary.
This statement could not be more insincere.
June 4th, 2009 at 6:26 am
our government are useless money spending criminals scum of the earth along with bernanke the useless rich lying basatrd boy
June 4th, 2009 at 7:37 am
BAIL OUT THE CRIMINAL BANKER SCUM WITH TRILLIONS !!!
LEAVE THE CITIZENS HOLDING THE EMPTY BAG !!!
THEN TALK ABOUT FISCAL RESPONSABILITY !!
WHAT A PIG !!!
WE ALL KNOW WHERE WE WOULD LIKE TO SEE HIM AND HIS KIND GO
AND RIGHT QUICK !!!
June 4th, 2009 at 10:51 pm
GO DIE YOU f---ING SCUM BERNACKIE, WHATEVER THE f--- YOUR NAME IS
June 6th, 2009 at 12:27 pm
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