Tags: Lawmaker | Bernanke | Urges | Republicans | Deal | Debt | us

Lawmaker: Bernanke Urges Republicans to ‘Deal With’ Debt

Wednesday, 13 Apr 2011 10:15 AM

Federal Reserve Chairman Ben S. Bernanke urged Republicans during a dinner meeting yesterday to find a way to “deal with” the rising U.S. national debt without endorsing a specific plan, lawmakers who attended said.

“He said we have to deal with the debt,” Representative Steve Pearce, a Republican from New Mexico, said in an interview after leaving the session with the central bank chief on Capitol Hill. “So far the market seems to be forgiving of the fact that we haven’t,” Pearce said, adding that Bernanke told lawmakers that “we need to deal with it.”

The comments extend Bernanke’s campaign for Congress to adopt a long-term plan to reduce a federal budget deficit on pace for a record this year. Republicans, who took control of the House this year and narrowed Democrats’ Senate majority, are gearing up for fights over further spending cuts and raising the $14.3 trillion legal cap on government borrowing.

“He was fairly consistent with what he says in public,” Patrick McHenry, a North Carolina Republican, said in an interview after the meeting. “I’m sure you’ve heard most of it before.”

Another attendee, Pennsylvania Representative Michael Fitzpatrick, said in an interview that Bernanke “doesn’t endorse a plan one way or another” to reduce the debt.

The meeting with about 15 Republican members of the House Financial Services Committee, held in its hearing room, lasted two hours and was closed to the public and media. Several lawmakers declined to elaborate on Bernanke’s remarks, saying the session was “off the record.”

‘Big Decisions’

“It was an opportunity for members just to have interchange and get the chairman’s perspective on some of those issues,” Texas Representative Randy Neugebauer said in an interview afterward. “We’re all making some pretty big decisions right now, and it helps to have that communication.” Bernanke talked about the economy and debt; Neugebauer declined to elaborate on what he said.

Yields on 10-year Treasurys have increased to 3.52 percent as of yesterday from 3.30 percent at the start of 2011, while the Standard & Poor’s 500 Index is up 4.5 percent.

The White House and Congress last week reached agreement on a spending plan for the current fiscal year, which started Oct. 1. The deal averted a shutdown of government agencies. President Barack Obama is set to announce long-term proposals for cutting the federal deficit today. In May, the government may be forced to increase the federal debt ceiling to ensure the U.S. will meet its financial obligations.

Bernanke, in semiannual monetary-policy testimony last month, reiterated his call for Congress to adopt a long-term plan to reduce the budget deficit while saying that near-term spending cuts, a priority for Republicans, may harm U.S. growth and result in the loss of 200,000 jobs.

The U.S. government posted a monthly shortfall of $188.2 billion in March, wider than a year earlier, Treasury Department statistics showed yesterday.

© Copyright 2017 Bloomberg News. All rights reserved.

   
1Like our page
2Share
StreetTalk
Federal Reserve Chairman Ben S. Bernanke urged Republicans during a dinner meeting yesterday to find a way to deal with the rising U.S. national debt without endorsing a specific plan, lawmakers who attended said. He said we have to deal with the debt, Representative...
Lawmaker,Bernanke,Urges,Republicans,Deal,Debt,us,economy
478
2011-15-13
Wednesday, 13 Apr 2011 10:15 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved