News Brief 2/26/2013, Adar 16, 5773
Fed Chairman Bernanke Warns Budget Cuts Could Slow Growth
Federal Reserve Chairman Ben Bernanke said Tuesday that the US economy still needs the Fed's stimulus, and warned that looming steep budget cuts could further slow growth.
Stressing that high unemployment remains the key challenge to the economy, Bernanke told a Senate panel that the central bank's extraordinary $85 billion a month bond-purchase program, aimed at holding down long-term interest rates and encouraging investment, was still merited, AFP reported.
The risks of the program include igniting inflation, and spurring a new round of dangerously risky behavior in the financial industry