Bernanke Urges Congress to Avoid Automatic Cuts

Ad Feedback

Federal Reserve Chairman Ben Bernanke told Congress low interest-rate policies are providing necessary support to an economy struggling with high unemployment.

In his semiannual report to the Senate Banking Committee, Bernanke signaled the central bank will continue its efforts to keep borrowing costs low.

Bernanke acknowledged the Fed's aggressive program to buy $85 billion a month in Treasury and mortgage bonds could spark inflation or make investors uneasy.

However, he said those risks are contained for now.

Bernanke also urged Congress to replace the automatic spending cuts set to kick in Friday with more gradual reductions in the short run.

"Such an approach could lessen the near-term fiscal headwinds facing the recovery while more effectively addressing the longer-term imbalances in the federal budget," Bernanke told lawmakers.

"The size of deficits and debt matter, of course, but not all tax and spending programs are created equal with respect to their effects on the economy," he said.

Log in or create an account to post a comment.  

CBN IS HERE FOR YOU!

Are you seeking answers in life? Are you hurting? Are you facing a difficult situation?

Find peace with God, discover more about God or send us your prayer request.

Call The 700 Club Prayer Center at 1 (800) 823-6053, 24 hours a day.

A caring friend will be there to pray with you in your time of need.

CBNNews.com

CBNNews.com

CBN News is a national/international, nonprofit news organization that provides programming by cable, satellite, and the Internet, 24-hours a day. Follow us on Facebook, Twitter, and Google+.