Bernake: The Newly-Hatched Deficit Hawk

Yesterday's 'Marketplace,' with the inestimable Kai Ryssdal, asked the question, 'Why is Bernanke a deficit hawk now?' It's a perfect question. The opening paragraphs set the stage:

'When Ben Bernanke decides to make news, he doesn't really pull any punches, does he? The chairman of the Federal Reserve was on Capitol Hill today. And he used his moment in the spotlight to warn Congress about the growing budget deficit. Washington is going to shell out almost $2 trillion more than it takes in this year. Of course all that spending was meant to rescue the U.S. economy from disaster. And there are signs that some of the money may be doing what it was supposed to do. So this morning's pronouncements by the Fed chairman prompt this question: Why's he such a deficit hawk now?'

Bernanke is now trying to control the costs of borrowing? Why? Congress is having such a great time spending. Why rain on their parade a year later? Enjoy reading.