Ben Bernanke, It’s time for stimulus plan

October 20, 2008 · By Faizan Filed Under Economy, Lead Story, News

The United States’ Federal Reserve Chief says lawmakers ought conceive another stimulus plan to bolster the economy

Ben Bernanke says congress should consider creating another stimulus plan to give the economy a boost. The man was addressing the House Budget Committee, asserting that congress must act and provide further help to the economy. Bernanke went on to say “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,”.

Analysts believe that Bernanke testification increases the probability for another stimulus plan for the United States. If so, such a plan would come into existence after the November 4th election but before the new president is in office along with a fresh congress.

Congress passed a $170 billion plan - nearly $100 billion in payments to tax filers earlier this year in order to restore consumer confidence and boost business spending. Brian Bethune, who is the chief US financial economist research firm Global Insight, said “Effectively, the Fed chairman is giving Congress a green light to go ahead with an additional fiscal stimulus package,”.

Nancy Pelosi welcomed Bernanke’s comments and issued a statement which read “Chairman Bernanke added his voice to the chorus of economists, experts and policymakers who insist that America needs a job-creating recovery package to get our economy back on track and to restore consumer and investor confidence,”.

Ben Bernanke has met both critiscism and praise for his assessment of the United States economy, his comments coming at a time when the United States is just under 2 weeks away from presidential elections may be a cause of concern.

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