Bernanke Says Fiscal Limits Can Improve Path of Federal Budget

Federal Reserve Chairman Ben S. Bernanke said adopting rules that limit federal spending or debt can help put the U.S. on a more sustainable fiscal path, urging lawmakers to consider their enactment.

“Well-designed rules can help promote improved fiscal performance,” Bernanke said yesterday in a speech in Providence, Rhode Island. A rule “could provide an important signal to the public that the Congress is serious about achieving long-term fiscal sustainability, which itself would be good for confidence,” he said.