Raise the US debt ceiling: after Barack Obama's appeal, Federal Reserve Chairman Ben Bernanke echoes him: "It is very important that Congress does what is necessary to raise the debt ceiling and thus prevent the government is unable to honor its bills,” the chairman of the Federal Reserve said in a speech at the University of Michigan.
Along the same lines as President Obama, Bernanke recalled that raising the debt ceiling "does not create new spending but allows the country to service existing debts". Bernanke acknowledged the progress made on the fiscal front with the New Year's deal which avoided the fiscal cliff and a likely new recession but stressed 'we are not out of the woods'. The big challenges remain, said the Fed chairman, especially in terms of public debt sustainability.
For Bernanke, the United States needs to find a way to reduce debt in the long term without endangering the economic recovery. Fed Chairman Ben Bernanke also said he was not satisfied with the results of the US economic recovery, insufficient to suggest an interruption of the stimulus program initiated by the central bank.
“Let me be clear: there has been some progress but there is still a long way to go,” Bernanke said. The Fed chairman reiterated that the key element for determining a more solid performance of the economy will be the creation of a new workforce. "We need a stronger labor market," Bernanke said.
