News / Economy

Bernanke Urges Congressional Support of Economy

Federal Reserve Chairman Ben Bernanke speaks during a news conference on Sept. 13, 2012.
Federal Reserve Chairman Ben Bernanke speaks during a news conference on Sept. 13, 2012.
VOA News
The U.S. central bank chief is pressing Congress to control the government's chronic deficit-ridden spending.

Federal Reserve Chairman Ben Bernanke says U.S. lawmakers must soon "find ways to put the federal budget on a sustainable path, but not so abruptly as to endanger" the country's sluggish economic recovery. He said Congress and the White House will have to resolve the country's impending "fiscal cliff," a series of sharp spending cuts and tax increases set to take effect in January unless the lawmakers reach a compromise on a new economic path.

He said analysts agree that if Congress does not resolve the issue, "it would likely throw the economy back into a recession." Republican and Democratic lawmakers have long been at odds over the government's annual deficits, adding to a growing long-term debt that totals $16 trillion.

Bernanke spoke to the Economic Club of Indiana in Indianapolis. He said Congress could also help the economy by reforming the country's tax laws, improving its educational system, supporting technological innovation and boosting international trade.

In recent weeks Congress has delayed action on the economic dispute, at least until after the country's November 6 presidential and congressional elections. The state of the nation's economy is at the center of the presidential contest between the incumbent Democrat, President Barack Obama, and his Republican challenger, Mitt Romney.

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Comment Sorting
by: Optimist from: Everywhere
October 01, 2012 4:40 PM
Congress is endangering people at the lower economic ladder and struggling Middle Class. Although the spending cut is designed to hit everyone at the same time, but the people who have been benefiting from two unnecessary tax cuts by the previous administration have enough layered cushion to be able to come out unscathed, as opposed to the people at the bottom who have carried the brunt of the mess that has befallen over the country. Let's not forget the fact that the American worker has nothing to do with the bad decisions by successive Congress made to bring the economy where its at.

Majority of the American People who have neither eaten nor benefited from the unfair and disproportionately unequal tax cut will bear the cost of unfairness extended from Congress for the second time. First time around, they were denied of equal tax benefit, and now they are about to experience the pain as the two edge sword is pulled out of gut, and that is very unfair. It would be nice if Congress suspends pay to each and every representative in the 113 Congress session, to show its solidarity with the American people on whose back the wrong decisions were made to bring the economy to the level where its at.

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