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Debt limit battle risks crisis
WASHINGTON - U.S. Federal Reserve Chairman Ben Bernanke warned on Tuesday that a failure to lift the government`s US$14.3-trillion debt ceiling risks a potentially disastrous loss of confidence in America`s creditworthiness.
In comments that could give fresh impetus to talks on raising the legal limit on the nation`s debt, Mr. Bernanke said the United States could lose its prized AAA credit rating and the U.S. dollar`s special status as a reserve currency might be damaged if Congress fails to act soon.
"Even a short suspension of payments on principal or interest on the Treasury`s debt obligations could cause severe disruptions in financial markets and the payments system," he told a budget conference.
Read the full article here.
WASHINGTON - U.S. Federal Reserve Chairman Ben Bernanke warned on Tuesday that a failure to lift the government`s US$14.3-trillion debt ceiling risks a potentially disastrous loss of confidence in America`s creditworthiness.
In comments that could give fresh impetus to talks on raising the legal limit on the nation`s debt, Mr. Bernanke said the United States could lose its prized AAA credit rating and the U.S. dollar`s special status as a reserve currency might be damaged if Congress fails to act soon.
"Even a short suspension of payments on principal or interest on the Treasury`s debt obligations could cause severe disruptions in financial markets and the payments system," he told a budget conference.
Read the full article here.