Reducing the US budget deficit is “daunting” and "it will be several years before the unemployment rate has returned to a more normal level,” says the US Federal Reserve chairman.
Ben Bernanke's recent forecast on the US economic situation was grim, as he noted that the budget deficit was "unsustainable" and that the unemployment rate will not recover for "several years".
At the current rate of borrowing, the US debt problem becomes "unbearable by 2035 or 2050," Bernanke added.
Currently, the US debt is at 60 percent of the GDP and is expected to rise to 150 percent by 2030.
The budget deficit is the difference between a government's spending versus its income, stated as a percentage of GDP.
Experts say the two main reasons for the US economic woes are mediocre economic growth and employers' reluctance to hire new workers.
"[The US] cannot consider the recovery to be truly established” until there is a strong and lasting job creation in the economy, he adds.
He said it would take around 10 years for the unemployment rate to reach a sustainable level of 5-6 percent at current economic growth rates.