Bernanke to Congress: It's your turn to act - Economy Watch ;..
In meeting with lawmakers Thursday, Federal Reserve Chairman Ben Bernanke's message was clear: The Fed can steer, but Congress needs to step on the gas to keep the economy from rolling off a fiscal cliff.
"Monetary policy is not a panacea," Bernanke said in testimony to the Joint Economic Committee. He urged lawmakers to address pressing fiscal issues on which both parties have essentially declared a stalemate. Bernanke made it clear that while the Fed will take action if the domestic or global financial situations worsen, the central bank shouldn't be expected to do Congress' heavy lifting.
"I'd be much more comfortable if, in fact, Congress would take some of this burden from us," he said. Although committee members on both sides of the aisle unsuccessfully pressed Bernanke to outline specific legislative steps, the Fed chairman emphasized outcomes rather than tactics. In particular, he urged Congress to head off the prospect of a so-called "fiscal cliff" at the end of the year, when automatic spending cuts will kick in and tax cuts will expire if no action is taken.
By Martha C. White
ReplyDeleteIn meeting with lawmakers Thursday, Federal Reserve Chairman Ben Bernanke's message was clear: The Fed can steer, but Congress needs to step on the gas to keep the economy from rolling off a fiscal cliff.
"Monetary policy is not a panacea," Bernanke said in testimony to the Joint Economic Committee. He urged lawmakers to address pressing fiscal issues on which both parties have essentially declared a stalemate. Bernanke made it clear that while the Fed will take action if the domestic or global financial situations worsen, the central bank shouldn't be expected to do Congress' heavy lifting.
"I'd be much more comfortable if, in fact, Congress would take some of this burden from us," he said. Although committee members on both sides of the aisle unsuccessfully pressed Bernanke to outline specific legislative steps, the Fed chairman emphasized outcomes rather than tactics. In particular, he urged Congress to head off the prospect of a so-called "fiscal cliff" at the end of the year, when automatic spending cuts will kick in and tax cuts will expire if no action is taken.