Federal Reserve Chairman Ben Bernanke bluntly warned the U.S. Congress on Thursday that failure to act soon to deal with the budgetary strains posed by an aging U.S. population could lead to serious economic harm.
“We are expecting what seems to be likely to be the calm before the storm,” Bernanke told the Senate Budget Committee as he acknowledged projections that the U.S. budget deficit could hold steady or even narrow in the near-term.
“However, if early and meaningful action is not taken, the U.S. economy could be seriously weakened, with future generations bearing much of the cost,” he added, citing worrisome long-term projections on the cost of programs such as Social Security and Medicare.
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