Bernanke endorses economic stimulus for weak economy
WASHINGTON -- Federal Reserve Chairman Ben Bernanke on Monday endorsed congressional efforts to craft a new economic stimulus package, noting risks of a "protracted slowdown."
He said any such legislation should include improved access to credit for consumers and businesses.
"With the economy likely to be weak for several quarters, and with some risk of a protracted slowdown, consideration of a fiscal package by the Congress at this juncture seems appropriate," Bernanke said in testimony prepared for the House Budget Committee on Monday.
The central bank chief did not specify how large a package Congress should consider. He did say any legislation should be structured so that it would boost spending when the economy was weakest, minimize long-term budget deficits and help ensure that credit begins flowing more freely to consumers and businesses.
House and Senate leaders in recent days have said Congress may come back after the election in November to consider a stimulus bill.
Democrats generally have talked about such things as extending unemployment benefits, providing new tax cuts and investing in bridges, roads and other infrastructure. Republicans have focused more on tax cuts and have questioned whether public works spending is appropriate.
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