Bernanke: Confidence In US Helped Dollar

While there are "outer limits" to the amount government can borrow, "it's hard to judge in any kind of explicit way since we don't know" where that limit lies, Fed's Bernanke tells Senate budget committee. Maintaining stable debt-to-GDP ratios is crucial to investor confidence; market "quite able" to absorb large amount of debt issuance over next couple of years if they see government is serious about bringing budget under control over the longer term, he says.

Bernanke:Very Angry About AIG Irresponsible Bets
Fed's Bernanke outraged by "irresponsible bets" of American International Group: "I think if there's a single episode in this entire 18 months that has made me angry, I can't think of one more than AIG," he tells Senate budget committee. Adds that "there was no oversight" of the giant firm; "I'm very angry about the situation."

Confidence In US Helped Dollar

Fed's Bernanke tells Senate budget committee that confidence in the future of the U.S. economy is one of the reasons why the U.S. dollar has done relatively well against other currencies throughout the financial crisis. Bernanke says he sees a much stronger economy not much further in the future.