Bernanke Repeats Warnings About Deficits
Wednesday February 28, 10:09 am ET
By Martin Crutsinger, AP Economics Writer
Ben Bernanke Says Government Leaders Must Take Early Action to Address Federal Budget Problems
WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke, discussing long-term fiscal challenges a day after a huge stock sell-off on Wall Street, told Congress Wednesday that government leaders must undertake "early and meaningful" action to address federal budget problems.
Bernanke made no mention of the volatile trading day in his prepared remarks before the House Budget Committee. But he did repeat warnings he voiced last month to the Senate Budget Committee about the strains coming from the government's big benefit programs of Social Security, and Medicare and Medicaid.
"Dealing with the resulting fiscal strains will pose difficult choices for the Congress, the administration and the American people," Bernanke said. "However, if early and meaningful action is not taken, the U.S. economy could be seriously weakened with future generations bearing much of the cost."
