Bernanke: Default on debt would increase deficit

Published



Federal Reserve Chairman Ben Bernanke warned U.S. lawmakers Thursday that they would deliver a “self-inflicted” wound to the nation’s economy by holding up efforts to raise the government’s borrowing limit. The Fed chief also said the central bank had no immediate plans to introduce new stimulus measures, elaborating on remarks he made a day earlier that the Fed stood ready to take additional steps to boost the economy if conditions worsened.

His comments ended an early-morning rally on Wall Street. Traders had interpreted Wednesday’s comments to mean the Fed was about to embark on another round of bond purchases, analysts said.

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