The Bankwatch

Tracking the consumer evolution of financial services

Posts Tagged ‘House

Bernanke is concerned about budget deficits


Fed Chairman Bernanke picks his words carefully here as the US treads that line between economic recovery and much higher interest rates which would produce other unintended consequences such as stifling growth, currency value shifts or inflation.

Bernanke calls for action on deficits | FT

Ben Bernanke on Wednesday called on Congress to take action now to bring down long term US budget deficits, warning that the bond market was concerned about rising US government debt.

The Federal Reserve chairman said the recent increases in bond yields “appear to reflect concern about large federal deficits” as well as improved optimism about the economy and other factors.

Here is the full testimony before the Committee on the Budget, U.S. House of Representatives, Washington, D.C. June 3, 2009

More analysis here.

Relevance to Bankwatch:

As plans are made, these are additional data points and views that point to a much different 2 – 5 years upcoming than we have experienced.

Written by Colin Henderson

June 3, 2009 at 12:17

Posted in economy, US

Tagged with , , ,

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