Bernake, looking like he needed sleep, or at least some eye cream, warned that the federal deficit needs to be trimmed. Bernake urged Congress and the White House to trim the $1.4 trillion dollar deficit. If the deficit is not lowered, interest rates could go higher and economic activity could slow causing a new slew of lay-offs.

Bernake stated:

The path forward contains many difficult trade-offs and choices, but postponing those choices and failing to put the nation’s finances on a sustainable long-run trajectory would ultimately do great damage to our economy.

Obama recently stated that he would like to cut the budget by $100 million. Which we now means nothing.