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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

(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.

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)

Federal Reserve Chairman Ben Bernanke will support legislative measures to stimulate the economy as long as they are quick and temporary, the NY Times reports. (AP Photo/Nell Redmond) (Associated Press)

Investors on Wall Street are betting that the central bank will reduce overnight lending rates by half a percentage point, to 3.75 percent from 4.25 percent, and that other cuts will follow, the NY Times... (Associated Press)

Federal Reserve Board Chairman Ben Bernanke, scheduled to appear Thursday before the House Budget Committee, says he'll support economic stimulus measures that are quick and temporary. (AP Photo/Dennis... (Associated Press)

Former Treasury Secretary Lawrence Summers has called for any economic stimulus plan to be "timely, targeted and temporary," the NY Times reports. (AP Photo/Manuel Balce Ceneta) (Associated Press)

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Bernanke Backs Stimulus Plans for Economy

Fed chief wants aid package that's quick and temporary

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Bernanke Backs Stimulus Plans for Economy

Fed chief wants aid package that's quick and temporary

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OTHER STORIES ON OUR RADAR

Ben Bernanke • Federal Reserve • US economy • tax cuts • federal fund rates • US Congress • House Budget Committee • economic stimulus package

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Bernanke: Adjustment Is Mostly Over

But admits economy could contract, possibility of recession

Bernanke Backs Quick Bailout

Fast, temporary stimulus would buoy flagging economy, Fed chief tells Congress

Bernanke Vows to Combat Mortgage Mess

Fed ready to step in; Wall Street holds out hope for rate cuts

Don't Hold Your Breath for New Fed Stimulus

Investors might be barking up the wrong tree

Bernanke: We're Prepared to Dole Out More Stimulus

Says he expects more job creation once 'temporary shocks' pass

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Newser By Users

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