'US entitlement spending may hit rates, growth'

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WASHINGTON, June 17 (Reuters): Rising spending on US Social Security and Medicare programmes, if unchecked, will inflate national debt and the budget defect, ultimately affecting interest rates and economic growth, Federal Reserve Chairman Ben Bernanke said Monday.

"There are limits to how big the deficit and the debt can be. Soon it will begin to have effects on interest rates, it will have effects on economic growth, and on stability, so ... it's not just balancing the federal budget, it's really a much broader question of the stability and strength of our economy over a longer period of time," Bernanke said in response to questions at a healthcare event on Capitol Hill.