Paul Ryan warns of fiscal and monetary clash

Reuters News
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Posted: May 25, 2011 4:22 PM
Paul Ryan warns of fiscal and monetary clash

WASHINGTON (Reuters) - House Budget Committee Chairman Paul Ryan warned on Wednesday that big spending cuts are necessary now to control the deficit and prevent a collision between fiscal and monetary policy.

"Big deficits today are nothing more than more tax increases tomorrow, more interest rate increases tomorrow. And our fiscal policy, I would argue, is on a collision course with our monetary policy," he told a Washington fiscal forum.

Ryan said what he called Democratic scare tactics on Medicare would only increase the risk of a U.S. debt crisis.

(Reporting by Alister Bull)