Federal Reserve Chairman Ben Bernanke is speaking to the Senate Budget Committee this morning. Bernanke appears support the White House plan to stimulate the economy. He argued that aggressive actions are needed to avoid economic calamity. Interestingly enough, he didn’t talk the budget or tax hikes in detail.
Bernanke noted that employment conditions have weakened in recent weeks and that there is little sign of economic improvement. He also noted that cap-ex plans from business are being delayed.
What is interesting is that Bernanke said that actions must be taken to restore stability and that Fed Funds are likely to stay very low for some time. It has new lending facilities and expanded existing facilities as an alternative to cutting rates further.
There is a lack of political mouth-piecing here that may have existed in times past. Bernanke is urging action, but sustainable action that can be kept in pace with the finances and tools available.
Here are the full text of Bernanke’s testimony.
JON C. OGG
MARCH 3, 2009
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