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Bernanke Backs Quick Bailout

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

By Kevin Spak, Newser Staff

Posted Jan 17, 2008 10:50 AM CST

(Newser) – The country needs a federal stimulus package ASAP, Federal Reserve Chairman Ben Bernanke told the House Budget Committee today, advocating immediate legislation designed “so its effects on aggregate spending are felt as much as possible within the next 12 months.” But he said the package should be “explicitly temporary,” to avoid unwanted long-term stimulus and an undue deficit bulge, CNNMoney reports.

Committee Chair John Spratt promised to heed the deficit warning, but maintained that something must be done now, echoing economists who believe a slump is already here. Another congressman voiced inflation fears, and Bernanke promised vigilance, but said he expected it to be moderate this year. Most believe Bernanke intends to cut rates by half a point at the Fed's Jan. 30 meeting.

Federal Reserve Chairman Ben Bernanke addresses a housing and economic forum, Thursday, Jan. 10, 2008 in Washington. (AP Photo/Gerald Herbert) (Associated Press)

Federal Reserve Board Chairman Ben Bernanke is seen during a meeting with House Speaker Nancy Pelosi, D-Calif., on Capitol Hill in Washington Monday, Jan. 14, 2008, to discuss ways Congress might act... (Associated Press)

Federal Reserve Board Chairman, Ben Bernanke, speaks in Washington in this Nov. 14, 2007 file photo. (AP Photo/Caleb Jones, File) (Associated Press)

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Bernanke Backs Quick Bailout

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

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Bernanke Sees Slow Recovery, Despite Positive Signs

Still hopes economy will grow by year's end

Fed Weighs Emergency Rate Cut

As economy deteriorates, inflation becomes less of a concern

Bernanke: Adjustment Is Mostly Over

But admits economy could contract, possibility of recession

Economy in Trouble: Bush

President warns of overreaction to housing, credit crises

Bernanke: We're Prepared to Dole Out More Stimulus

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

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Bernanke Backs Quick Bailout

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

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OTHER STORIES ON OUR RADAR

Congress • inflation • Ben Bernanke • Federal Reserve • subprime mortgages • recession • budget deficit • House Budget Committee • economic stimulus package • financial crisis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Bernanke Sees Slow Recovery, Despite Positive Signs

Still hopes economy will grow by year's end

Fed Weighs Emergency Rate Cut

As economy deteriorates, inflation becomes less of a concern

Bernanke: Adjustment Is Mostly Over

But admits economy could contract, possibility of recession

Economy in Trouble: Bush

President warns of overreaction to housing, credit crises

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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