Bernanke on U.S. Economy and the Debt Crisis

Ben Bernanke, U.S. Federal Reserve Chairman, recently stated that the Eurozone debt crisis has significantly impacted the United States’ trade and financial markets.

“The European Union accounts for roughly one-fifth of U.S. exports of goods and services. The U.S. exports to Europe over the past few years have underperformed our exports to the rest of the world,” Bernanke testified before the House Committee on Oversight and Government Reform.

“In addition, weaker demand from Europe has slowed growth in other economies, which has also lowered foreign demand for our products,” he said.

The financial markets have also taken a hit, according to Bernanke. Risk of the crisis spreading still lingers, though financial firms and markets have used this time to adjust their strategies and risks throughout the developing situation. European officials also managed to alleviate some of the stresses in the region, improving the global approach and strengthening markets everywhere.

“However, Europe’s financial and economic situation remains difficult, and it is critical that the European leaders follow through on their policy commitments to ensure a lasting stabilization,” Bernanke said.