Skip to content
Subscriber Only

Bernanke Calls Debt Limit ‘Wrong Tool’ to Force Budget Cuts

Federal Reserve Chairman Ben S. Bernanke said the U.S. debt ceiling shouldn’t be used as a bargaining chip to force budget cuts, and failing to raise it could cause “severe disruptions” in financial markets.

Using the debt limit deadline to force some “necessary and difficult fiscal-policy adjustments” is “the wrong tool for that important job,” he said. “We should avoid unnecessary actions or threats that risk shaking the confidence of investors in the ability and willingness of the U.S. government to pay its bills,” Bernanke said today in the text of remarks in Washington.