Failure to fix US fiscal woes would hurt recovery-Bullard

PRAGUE, March 29 (Reuters) – The U.S. fiscal situation is
very serious and it is not clear how it will be resolved by
lawmakers, but failure to do so would pose a risk to the global
recovery, St. Louis Federal Reserve President James Bullard said
on Tuesday.

“It’s really incumbent on Congress to come to an agreement
and contain the very large deficits in the United States, help
set the long-term fiscal path to something more sustainable in
the U.S.,” Bullard told an economic conference in Prague.

“And if you look at the negotiations that are going on, it’s
not that clear how they are going to do it. Failure to do that,
I think, would be a risk for the U.S. and for the global
recovery.”
(Reporting Michael Winfrey and Jan Lopatka)

Failure to fix US fiscal woes would hurt recovery-Bullard