Boy, that Obama-Pelosi Stimulus plan worked wonders didn’t it?
Federal Reserve Chairman Ben Bernanke told lawmakers yesterday that the US economy is close to faltering.
Advertisement - story continues below
The Federal Reserve is prepared to take further steps to help an economy that is “close to faltering,” Fed chairman Ben Bernanke said on Tuesday in his bleakest assessment yet of the fragile U.S. recovery.
Citing anemic employment, depressed confidence, and financial risks from Europe, Bernanke urged lawmakers not to cut spending too quickly in the short term even as they grapple with trimming the long-run budget deficit.
He made clear that the U.S. central bank’s policy committee considers inflationary pressures well under control and given high unemployment, would be ready to ease monetary conditions further following the launch of a new stimulus measure in September.
“The Committee will continue to closely monitor economic developments and is prepared to take further action as appropriate to promote a stronger economic recovery in the context of price stability,” Bernanke told the Joint Economic Committee of Congress.
His language was firmer than the policy-setting Federal Open Market Committee’s statement less than two weeks ago, when the Fed said it would monitor the outlook and was “prepared to employ its tools as appropriate.”