NA­TIONAL

The Covington News - - The Second Front - The world keeps turn­ing. Here’s a roundup of what’s hap­pen­ing from the Associated Press.

WASH­ING­TON — Fed­eral Re­serve Chair­man Ben Bernanke warned U.S. lawmakers Thurs­day that they would de­liver a “self-in­flicted” wound to the nation‘s econ­omy by hold­ing up ef­forts to raise the gov­ern­ment's bor­row­ing limit.

The Fed chief also said the cen­tral bank had no im­me­di­ate plans to in­tro­duce new stim­u­lus mea­sures, elab­o­rat­ing on re­marks he made a day ear­lier that the Fed stood ready to take ad­di­tional steps to boost the econ­omy if con­di­tions wors­ened.

His com­ments ended an early-morn­ing rally on Wall Street. Traders had in­ter­preted Wed­nes­day’s com­ments to mean the Fed was about to em­bark on an­other round of bond pur­chases, an­a­lysts said.

The gov­ern­ment hit its $14.3 tril­lion bor­row­ing limit in May. Repub­li­cans have held up in­creas­ing the limit be­cause of con­cerns that ex­ces­sive gov­ern­ment spend­ing has widened the fed­eral deficits. The Trea­sury Depart­ment said it will de­fault on its debt if the limit is not raised by Aug. 2.

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