Thursday, March 1, 2012

Bernanke: Economic recovery 'uneven'



NEW YORK (CNNMoney) -- In day two of Ben Bernanke's semi-annual testimony before Congress, the Federal Reserve Chairman warned lawmakers that their short-term policies could put the recovery at risk.

"I think it is important that we keep in mind that the recovery is not yet complete, unemployment remains high, the rate of growth is modest," he told the Senate's Committee on Banking, Housing and Urban Affairs.

As he did a day earlier before the House, Bernanke stressed that January 2013 brings not only the expiration of the Bush tax cuts, the payroll tax cut and extended unemployment benefits, but also the implementation of massive spending cuts to the federal budget.

All of these issues hitting at the same time pose a significant risk to economic growth that Bernanke on Wednesday called a "fiscal cliff."

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