Bernanke Warns Congress Not To Cut Spending, Cautions About 'Fragile' Recovery

[laughingliberal]

While the conventional wisdom in Washington appears to focus largely on the need to lower the federal government's budget deficit, rather than on reducing the nation's nearly 10 percent unemployment rate, Federal Reserve Chairman Ben Bernanke sent a message Wednesday to lawmakers: Now's not the time.

"Right now I don't think is the time -- this very moment is not the time -- to radically reduce our spending or raise our taxes because the economy is still in recovery mode and needs that support," Bernanke testified before the House Budget Committee.

Bernanke referred to the nascent economic recovery as "still pretty fragile" and cautioned that the economy "may need more assistance."

Though the nation's output is growing, jobs are still scarce; nearly eight million jobs have been lost as a result of the worst financial crisis since the Great Depression. Since January the private sector has created about 480,000 jobs, Labor Department data show. At that rate, the economy won't return to its pre-recession employment level of about 115.6 million jobs until about 2016.

More: http://www.huffingtonpost.com/2010/06/09/bernanke-warns-congress-n_n_606232.html

Kinda spooky. Like he sees bad times ahead. Just a few days ago he was saying there was no danger of a double dip.

[DJ13]

1. Its the "..or raise our taxes" part he's most worried about

The elites are trying to make the Bush tax cuts permanent, and they've been calling those cuts expiring an increase.

Bernanke was speaking upper class code there.

[laughingliberal]

2. Ah, I see now. Still, he's never backed down from calling for spending cuts before. Just sayin'. eom

[DJ13]

3. True, but he was saying to prepare for cuts now during his testimony

He still wants cuts, but Im not sure if he would support them in a continuing weak economy.

[amborin]

4. why hasn't the Fed bought bonds to lower long-term borrowing costs for families?

[Better Believe It]

5. "This very moment is not the time -- to radically reduce our spending or raise our taxes"

"This very moment" Was he checking his watch when he made that comment?

Just moderately cut spending now and radically cut it after the mid-terms when more Republicans will be in Congress.

[damntexdem]

6. It took Roosevelt's administration four years to get to this place and make this mistake.

That the Obama administration is poised to make the same budget-cutting error in just one-and-a-half years certainly demonstrates the acceleration of political activity in a hyper-electronics age.

[IndianaJoe]

7. Yup! n/t