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Bernanke: Recovery 'Is Close to 'Faltering'

He advises Congress not to cut spending

By the Associated Press

Posted Oct 4, 2011 2:22 PM CDT

(AP) – Federal Reserve Chairman Ben Bernanke said today that the US economic recovery "is close to faltering" and that the central bank is prepared to take further steps to support it. (That potential action apparently pleased investors: The Dow came off the day's lows, fell a bit, then rebounded furiously to close up 153.) Bernanke told the congressional Joint Economic Committee that the economy is growing more slowly than the Federal Reserve had expected. The biggest factor depressing consumer confidence is poor job growth, he added.

"We need to make sure that the recovery continues and doesn't drop back and that the unemployment rate continues to fall downward," Bernanke said. He also wasn't shy in offering Congress more advice: He reiterated his warning that lawmakers should not cut spending sharply while the economy is weak. The central bank's next policy meeting is scheduled for Nov. 1-2.
Federal Reserve Board Chairman Ben Bernanke testifies on Capitol Hill Tuesday.
Federal Reserve Board Chairman Ben Bernanke testifies on Capitol Hill Tuesday.   (Evan Vucci)
Federal Reserve Board Chairman Ben Bernanke pauses as he testifies on Capitol Hill.
Federal Reserve Board Chairman Ben Bernanke pauses as he testifies on Capitol Hill.   (AP Photo/Evan Vucci)
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COMMENTS
Showing 3 of 54 comments
ddhartma
Oct 5, 2011 10:29 AM CDT
So the Bush administration screwed us all and the nation suffered for it. But, should we ever expect the current administration to do something to fix the problem? If one President can screw it up, why can't another at least make in roads to fixing it? As I see it today, we are no better off than when Bush left office (in fact are probably worse off) and yet so many want to continue putting the blame on the past administration. When do we begin to hold the current administration responsible? Shouldn't we have expected something in the two and a half years he's been in office?
Just_Dave
Oct 5, 2011 12:16 AM CDT
Want the economy to recover? Here's two sure fire things to do that will spark employment on massive levels. 1.)  Legalize and tax drugs.  The revenue will be enough to pay off our debt and give every American a tax rebate.  While we will lose thousands of law enforcement jobs we will need people to man the rehab centers. 2.)  Repeal Obamacare.  Every employer in America has stopped hiring because they don't want to face the increased cost of Obamacare.  While we can keep some of the good mandates that keep insurance companies from dropping sick people we need to get rid of penalizing employers.  Just fucking Nationalize health care already, get the pharmaceuticals too.
MisterPlinkett
Oct 4, 2011 11:14 PM CDT
Recovery?  LOL If printing trillions of dollars to create negative job growth is a recovery, then i can't wait to see what's next.

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Politics • Money • US

 
Ben Bernanke • Federal Reserve • economy

 
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