Federal Reserve Chairman Ben Bernanke testifies before the House Budget Committee on the nation's current economic and financial conditions and issues pertaining to the federal budget.
He said large budget deficits threaten financial stability and the government can’t continue indefinitely to borrow at the current rate to finance the shortfall.
“Unless we demonstrate a strong commitment to fiscal sustainability in the longer term, we will have neither financial stability nor healthy economic growth,” Bernanke said in his testimony to lawmakers. “Maintaining the confidence of the financial markets requires that we, as a nation, begin planning now for the restoration of fiscal balance.”
