Skip to comments.Bernanke Echoes CBO's Report of "Massive Fiscal Cliff"
Posted on 09/12/2012 11:54:37 AM PDT by 92nina
At the Federal Reserves last conference meeting in Jackson Hole, Wyoming, Federal Reserve Chairman Ben Bernanke gave the Feds outlook for the U.S. economy.
Taxmageddon was one of Bernankes biggest concerns, as he warned of a massive fiscal cliff. Bernanke suggested that Congress figure out ways to achieve the same long-run fiscal improvement without having it all happen at one date. Bernankes statements echoed the CBOs latest report on the economy that also warned of a massive fiscal cliff, one that would undoubtedly lead to a recession in 2013.
Bernanke has made it clear in his past warnings to Congress that Taxmageddons impact would be counterproductive to the recovery. Earlier this year, Bernanke told the Senate Banking Committee that Taxmageddon would probably knock the recovery back into a recession and cost a lot of jobs, and would greatly delay the recovery that were hoping to facilitate.
Although the Federal Reserve is doing its best to facilitate a recovery, Former Fed Governor, Robert Heller, stated that the Fed will not act before fiscal cliff resolved. If true, the Fed will continue to stall any significant monetary action until Congress reaches a decision on tax cuts. No action by the Fed could lead to a dire predicament, however, as the recovery continues to be hindered by negative job reports, depressing economic growth, and a looming fiscal cliff.
With 380,000 leaving the labor force in August, the weariness of the general public over the economy is evident. The August job report is not only troubling for the Department of Treasury, but it is worrisome for the Federal Reserve who is responsible for maintaining full employment.
It is imperative that Congress prevent next years massive series of tax hikes. This would be beneficial to families and small employers and would help with the Federal Reserves efforts to facilitate economic growth.
Read more: http://atr.org/bernanke-echoes-cbos-report-massive-fiscal-a7179#ixzz26HbkFYAp
No. 1.....Extend Bush’s tax cuts......NOW.....This will kill Obama but I think he’s going to have to eat it.
He’d know since he did help build it.
Sounds like Ben is pimping for the Food Stamp President’s re-election. Congress can pass what it needs after President Romney is sworn in and the Republican Congress takes up the issue. They can make it retroactive to 1 Jan 2013. Ben is pimping for the Food Stamp President because he knows his days are numbered if the Food Stamp President doesn’t get re-elected.