Federal Reserve Chairman Ben S. Bernanke, with continued worries about unemployment, appeared before Congress today indicating his apprehension about longterm deficits. According to Dan Greenhaus, chief cconomic strategist at Miller Tabak & Co., the Fed Chairman’s statements show concern for “draining liquidity rather than providing more stimulus“. Bernanke emphasized that increasing national savings was an imperative and forecast real problems if current deficit grows to 4-5% of GDP. Current measures by the Federal Reserve include keeping interest rates near zero. He noted that companies have been able to refinance, but are reluctant to spend.
