Financial Times FT.com

Bernanke warns on deficit

By Krishna Guha in Washington

Published: June 3 2009 15:50 | Last updated: June 3 2009 22:22

Ben Bernanke urged Congress on Wednesday to act now to bring down long-term budget deficits, warning that a failure to do so might lead to a future debt trap.

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

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