Bernanke warns mortgage rates could rise on debt worries

Federal Reserve Chairman Ben Bernanke testified today before President Obama’s commission tasked with dealing with the federal deficit.  He did not mince words when he said that failure to pay down the huge federal deficit would cause “great damage” to the U.S. economy.  Bernanke said that current government spending is on “an unsustainable path”. The Fed Chairman advocated the committee to develop a plan to pay down the federal deficit, which hit a record amount of $1.4 trillion last year. Large portions of the debt are a result of recent economic bailout efforts and the cost of fighting multiple wars.