Bernanke to Congress: Stop Screwing the Economy
Says he's not taking his foot off the gas with monetary policy
By Kevin Spak, Newser User
Posted May 22, 2013 10:19 AM CDT
Ben Bernanke waves goodbye after speaking during a banking conference in Chicago, in this May 10, 2013 file photo.   (AP Photo/Paul Beaty, File)

(Newser) – The Federal Reserve isn't planning to take its foot off the gas pedal anytime remotely soon, Ben Bernanke told Congress today, while rebuking legislators for not doing their own part to juice the economy. The Fed's interest rate has been near zero since 2008, and Bernanke said he expects it to stay there for a "considerable time," according to CNN Money. The Fed won't ease up until unemployment drops to 6.5% or inflation passes 2.5%, and it doesn't expect either to happen until 2015.

But he also criticized Washington's recent economic moves, saying that the Fed didn't "have the capacity to offset an economic headwind of this magnitude." He cited the expiration of the payroll tax cut, other tax hikes and spending cuts (particularly defense spending), and the sequester as "a substantial drag on the economy." Neil Irwin at the Washington Post translates the message to Congress thusly: "You're the reason the economy isn't taking off more."

More From Newser
My Take on This Story
To report an error on this story,
notify our editors.
Bernanke to Congress: Stop Screwing the Economy is...
Show results without voting
You Might Like
Showing 3 of 42 comments
May 23, 2013 8:22 AM CDT
He would be better off telling Congress to screw the economy, they are masters at doing exactly what they are told not to do.
May 23, 2013 6:11 AM CDT
A bit too late for Ben to be protesting the Obama regime, things have been screwed since the first stimulus was announced
May 22, 2013 7:41 PM CDT
Think positively: Only 972 days until Barry Soetoro returns to organize another Chicago neighborhood.