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Bernanke warns: US deficit ‘not sustainable’
Business digest: Federal Reserve chairman presses politicians to take action over nation's debt
The US national deficit is the country's "most important economic problem in the long term," according to Federal Reserve chairman Ben Bernanke, speaking at a press conference yesterday.
Alongside discussion of predictions for the country's GDP and the setting of interest rates, Bernanke insisted that the US government must address the problem "as quickly and effectively as they can" because it was "not sustainable".
While the US recovery was "proceeding at a moderate pace", construction and housing sectors were still performing badly.
Last week, credit ratings agency Standard and Poor suggested that they might take away the US's top-level rating. Bernanke said that he hoped this would "provide one more incentive for Congress and the political leaders to take action".
Read a full report at the Guardian. ·
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In order to make a dent in the federal debt, global investors believe the United States must raise taxes, as outlined by a brand new Bloomberg Global Poll. Approximately 67 percent of poll respondents think reducing the debt will not be possible otherwise, which runs counter to the GOP plan of debt attack. Without installment loans, it might be very difficult to decrease the deficit.