Bernanke Asks Congress to Slash Budget Deficits Instead of Brinkmanship Over Tax and Spending Policy

October 05 00:00 2011

New York, October 5 ( – Ever since he became chairman of the Federal Reserve in 2005, when he succeeded Alan Greenspan, Ben Bernanke has made valiant efforts to boost the US economy. On Tuesday he sent a clear signal to the Congress asking them to stop stretching the tax and spending policy to dangerous levels and to slash budget deficits more than planned without undermining economic growth.

In his unusually bold outburst, Bernanke told the lawmakers that their inaction in putting the nations’ finances on a solid footing and their slackness in allowing the nation to tumble from one crisis to another is not an acceptable option. These remarks were made when the Obama administration and Congress are facing a stalemate regarding the right way to handle the government finances.

President Obama’s $447 billion proposal for promoting job creation has been rejected by the Republicans, although they are not averse to some of its elements. In the meantime, the congressional “supercommittee” is trying hard to evolve a bipartisan plan for reducing the national debt.

Notwithstanding the severe criticism meted out to him by some Republican presidential candidates saying that he has overplayed his hand as Fed chairman, Bernanke has reinserted himself in the political debate over the nation’s fiscal policy with his candid remarks.