Bernanke warns on US debt bargaining

FEDERAL Reserve chairman Ben Bernanke warned US lawmakers yesterday that using the country’s national debt limit as a political tool risks a fresh financial crisis.

Republicans have threatened to oppose lifting the $14.3 trillion (£8.8 trillion) ceiling on US sovereign debt. “It is a risky approach. The worst outcome would be one in which the financial system was destabilised as we saw following Lehman,” he said.