Bernanke: I Don't Know Yet
How The U.S. Will Fix Its Deficit
Vincent Fernando, CFA | Jun. 8, 2010, 6:25 AM
Fed chairman Ben Bernanke has warned about a tough recovery ahead, in an interview with CNN.
The U.S. economy will most likely continue to recover, but it won't feel 'terrific' for a lot of Americans who will remain 'under financial stress'.
It will take many years for unemployment to return to historically normal levels.
Yet while everybody agrees that the budget deficit needs to be brought under control, it remains to be seen how, or if, this will be done. Even Bernanke isn't quite sure:
Bernanke talked about the need for U.S. leaders to take control of the nation's deficits over the medium term, some three to six years from now, in a way "that will allow us to bring our fiscal house in order over a long period of time."
But when asked if the nation has such a plan, or if he's seen one, Bernanke said: "No. Not yet. I don't."
He wouldn't give recommendations as to whether Congress should raise taxes to cut deficits.
"That's a political question, I'm not going to try to make Congress' decision for them, they wouldn't pay attention to me anyway," Bernanke said.