Federal Reserve Chairman Ben Bernanke is urging Republicans to support a vote to raise the nation's borrowing limit. He says threatening to block the increase to gain deeper cuts in federal spending could backfire and worsen the economy.
Bernanke says even a short delay in making payments on the nation's debt would cause severe disruptions in financial markets, damage the dollar and raise serious doubts about the nation's creditworthiness. The nation must raise the $14.3 trillion borrowing limit by Aug. 2.
Bernanke is calling on Democrats and Republicans to develop a credible long-range plan to attack the nation's soaring budget deficit. The deficit is on track to top $1 trillion for a third straight year.
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