Ben Bernanke: Same Economic Analysis, Different Day
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Chip Somodevilla/Getty Images(WASHINGTON) — The appearance by Federal Reserve Chairman Ben Bernanke Wednesday before the House Financial Services Committee went pretty much the same as Tuesday’s testimony before a Senate panel.
Bernanke didn’t deviate from his contention that high unemployment is keeping the economy from expanding and that the Fed might take some action, but he again wasn’t specific about what steps might be taken or when they might happen.
Just like Tuesday, Bernanke also raised red flags that the economy was headed towards a “fiscal cliff” if Congress doesn’t move to extend Bush-era tax breaks and stop drastic spending reductions.
Otherwise, the Fed chief said another recession was possible, throwing even more Americans out of work.
About the only difference during Wednesday’s appearance was Texas Congressman Ron Paul again pushing a bill that would allow Congress to audit the Fed’s monetary policy decisions, an action that Bernanke described as a “nightmare scenario.”
He noted, “There’s a lot of evidence that an independent central bank that makes decisions based strictly on economic considerations and not based on political pressure will deliver lower inflation and better economic results in the longer term.”
Paul has long called for eliminating the Fed, alleging, “Trillions and trillions of dollars (are) being printed out of thin air.”
Copyright 2012 ABC News Radio