U.S. Must Start to Rein In Deficit, Fed Chief Says

The article mainly talks about the difficult choices the government should make to address its gaping deficits. According to Fed chairman Bernanke, a credible plan for reining in federal deficits could help long-term interest rate. To maintain the confidence of public and financial markets the policy makers have to make move decisively to set federal budget on a trajectory towards sustainable fiscal balance. He also said that a moderate recovery had begun, but it still takes time to restore 8.5 million jobs lost in the last two years. Inflation remains low and the personal consumption has been rising at an annual rate of 1.25%. He then addressed one politically heated issue of Chinese currency. To be specific, he pointed out that it would be good for Chinese to allow more flexibility in their exchange rate, because it helps to stimulate domestic demand and consumption.