As European peripheral countries have found out to their cost, interest rates increase when governments run large budget deficits, and as they do it becomes increasingly difficult to reduce r-g to a sustainable level.

ECONOMIST: Daily chart

Senate Judiciary Committee Chairman Pat Leahy, D-Vermont, said he has been in close touch with Sullivan and believes the agency director is taking "serious action" to investigate the incident, while House Oversight Committee Chairman Rep. Darrell Issa, R-California, said he has a high level of confidence in Sullivan.

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