Thursday, June 10, 2010

Bernanke Discusses Budget at House Hearing

At a congressional hearing yesterday, Federal Reserve Chairman Ben Bernanke cautioned representatives about the federal budget, claiming that it "appears to be on an unsustainable path," although he also acknowledged that the deficit had been necessary to ameliorate effects of the recession. The New York Times reports that Bernanke was questioned for almost two hours by members of the House Committee on the Budget, to whom he offered warnings about rising long-term interest rates and the detrimental affects that high unemployment would have on economic growth (see "Bernanke Warns of 'Unsustainable' Debt," 6-9-2010). The Chairman recommended neither spending cuts nor tax increases, insisting that Congress must make those decisions.

You can find a full transcript of Bernanke's testimony on the House web site. To view the Budget of the United States Government, go to GPO Access. To find more government resources about budget and debt, see our guide.

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