Federal Reserve Chairman Ben Bernanke told a bipartisan budget commission on Tuesday the country's deficits are on an unsustainable path, and will require remedial action from policymakers.
Though he stopped short of offering concrete proposals for fiscal reform, Bernanke flagged the rising cost of health care and social security as key hurdles.
In the absence of further policy actions, the federal budget appears set to remain on an unsustainable path, Bernanke told the 18-member National Commission on Fiscal Responsibility and Reform.
President Barack Obama has given the independent panel leeway to suggest remedies for the debt and deficits. The panel has until December 1 to report back on its recommendations, enabling it to deliver its report after the November U.S. congressional elections.