Wednesday, June 3, 2009
Federal Reserve Chairman Ben Bernanke says the forceful government intervention to fight the financial crisis and lift the U.S. out of recession was "necessary and appropriate" even though it worsened the nation's budget deficit.
Now, he's urging Congress and the Obama administration to start plotting a strategy to curb deficits.
In testimony before the House Budget Committee today, Bernanke is warning that failing to do so could eventually erode investor confidence and endanger the economy's prospects for long-term health.
Concerns are growing at home and overseas about the United States' mounting red ink.
German Chancellor Angela Merkel says central banks, including the Fed, may have gone too far in trying to fight the global financial crisis.
Bernanke disagrees, saying he's "comfortable" with the Fed's actions.