Bernanke Backs Stimulus Plans for Economy

Ben Bernanke insists he won’t take sides in a congressional fray over how to revive the nation’s flat-lining economy. But the Fed chief says he will support an economic stimulus package—be it GOP tax cuts or Democrats' increased spending—as long as it is quick and temporary, the New York Times reports. Lawmakers are scrambling to devise ways to ward off a recession, and Bernanke testifies before a House panel tomorrow.

“He said that while he wasn’t going to endorse a specific plan, if an economic stimulus package was properly designed and enacted so that it enters the economy quickly, it could have a very positive effect,” said Sen. Charles Schumer. Democrats are pushing measures such as consumer tax rebates or increased jobless benefits, while Republicans back tax breaks for businesses. The Fed, meanwhile, is expected to cut interest rates again this month. (More Ben Bernanke stories.)