Bernanke Backs Stimulus Plans for Economy

Fed chief wants aid package that's quick and temporary
By Wesley Oliver,  Newser Staff
Posted Jan 16, 2008 7:51 PM CST
Federal Reserve Board Chairman Ben Bernanke meets with House Speaker Nancy Pelosi, D-Calif., on Capitol Hill in Washington Monday, Jan. 14, 2008, to discuss ways Congress might act to boost the slowing...   (Associated Press)
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(Newser) – 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.