Bernanke Urges Caution In Sharp Deficit Cutting

By: AP
By: AP

WASHINGTON (AP) -- Ben Bernanke is urging lawmakers to balance their desire to cut deficits with policies that could help boost the weak economy in the short run.

The Federal Reserve chairman is testifying before the House Budget Committee a week after the Fed signaled that a full recovery could take at least three more years. As a result, the Fed said it doesn't plan to raise its benchmark interest rate from a record low before late 2014 at the earliest.

Bernanke is also appearing two days after the Congressional Budget Office estimated that the deficit will top $1 trillion for a fourth straight year and could stay around that level for years.

Bernanke says he recognizes that huge budget deficits represent a serious threat to the economy.

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  • by RetireMilitaryGuy Location: CSprings on Feb 2, 2012 at 01:02 PM
    You guys are paranoid. The point he is trying to get across is that legislators need to balance simply cutting for cuttings sake with the needs of the economy, which he is responsible for. You can obviously cut by firing every federal employee, but then stop paying the military, stop support payments to foreign countries, etc. Then the economy would fail. Quite frankly, I would take Bernanke's opinion over yours any day.
    • reply
      by Anonymous on Feb 2, 2012 at 05:14 PM in reply to RetireMilitaryGuy
      That's because you work for Bernanke.
  • by JR on Feb 2, 2012 at 09:33 AM
    America easily bought Sept 11 so the government knows it can do anything to the the USA as long as they put it in a patriotic wrapper. The whole election process is silly but America wants to hold on to the belief that they can make a difference. No thanks, I'd rather skip it all and retain some sense of pride.
  • by Nath Location: Colo Spgs on Feb 2, 2012 at 09:14 AM
    Bernanke, Greenspan, and Geithner all need to be investigated and tried for the damage they have inflicted on America. Look up their biographies online and you will see a common link to the international, central banking cartel. Why would Ben want to keep our government spending $1 trillion plus for years to come? - Not in the best interests of the American taxpayers, but for the profit of the likes of Goldman Sachs, J.P. Morgan, and others that manipulate our markets and control our politics. Unless and until Congress were to once again SET the value of gold and silver in relation to the dollar, even gold and silver will continue to be manipulated by these banks with the continuing cooperation of our regulatory bureauacies. Corrupt? Our government has been bought and paid for, with precious few exceptions. It may already be too late to save America from what it has become and we may have to start over with just a few willing states and the original Constitution and Bill of Rights.
    • reply
      by Anonymous on Feb 2, 2012 at 09:27 AM in reply to Nath
      Mrs. Greenspan works for the media. Elite-born Anderson Cooper was part-time CIA intern. Erin Burnett worked for Goldman Sachs....... No, it's not all coincidence.
      • reply
        by RetireMilitaryGuy on Feb 2, 2012 at 01:11 PM in reply to
        Who cares if Mrs. Grenspons works for the media, she's an American. Who cares if Anderson Cooper was a part-time CIA intern, he's an American. Who cares if Erin Burnett worked for Goldman Sachs, she's an American. Do you not realize we are all in this together?
        • reply
          by USA! on Feb 2, 2012 at 05:16 PM in reply to RetireMilitaryGuy
          Except for Obama we are all Americans!
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