WASHINGTON — Federal Reserve Chairman Ben Bernanke called yesterday for the United States to whittle down its record-high budget deficits and for countries like China to get their consumers to spend more.

Bernanke said those moves would help reduce "global imbalances" — uneven trade and investment flows among countries that contributed to the financial crisis.

The Fed chief's remarks to a Fed conference in Santa Barbara, Calif., came after the government said Friday that the U.S. budget deficit hit a $1.42 trillion deficit for the 2009 budget year that ended Sept. 30. The previous year's deficit was $459 billion.

HASBRO'S PROFITS RISE IN 3RD QUARTER

NEW YORK — Sales of toys tied to the "G.I. Joe" and "Transformers" movies and cost-cutting drove a third-quarter profit increase for Hasbro. But perhaps more significant are early signs of a pickup in toy sales in recent weeks as the crucial holiday season approaches.

Other strong sellers in the third quarter included Littlest Pet Shop, Play-Doh and Tonka. But overall sales fell 2 percent during the quarter, or up 1 percent excluding the effect of the stronger dollar.

Hasbro said yesterday North American sales reflect stronger sales of toys for boys, but revenue was weighed down by weakness in girls and preschool games and puzzles.

GOVERNMENT OFFERS NEW MORTGAGE HELP

WASHINGTON— The Obama administration yesterday unveiled a new program to support state and local housing finance agencies. The plan will help the agencies finance mortgages for first-time homebuyers and develop rental housing.

The agencies have had a hard time raising money because of the housing crisis and credit crunch. This year, the agencies have sold about $4 billion in tax-exempt bonds — one-fourth the amount in a typical year. That reduction is limiting the number of loans they can make.

U.S. HOMBUILDERS' CONFIDENCE SLIPS

LOS ANGELES — U.S. homebuilders are growing less optimistic about their fortunes as a temporary tax credit for first-time homebuyers that boosted home sales this year nears its end.

The National Association of Home Builders said yesterday this month's housing market index, which tracks industry confidence, slipped by one point to 18, the first dip since June when the reading fell to 15.

Builders also are feeling less positive about the likelihood of sales between now and the next six months and said home-shopper foot traffic has softened since September.