Bernanke Pitches Fiscal Stimulus to Congress

Federal Reserve Chairman, Ben Bernanke, testified in front of Congress this week and advocated a second round of fiscal stimulus in an effort to prevent a long period of economic slowdown. Bernanke, who would be typically be centering his talking points on inflation, interest rates, and monetary policy told Congressional legislators that a new fiscal package should be geared toward opening up credit markets for American consumers. The first stimulus package, passed by Congress last spring, gave most Americans a $600 rebate check and helped keep GDP positive through the second quarter of 2008. Bernanke and most economists are in agreement that no fiscal policy will prevent at least a short recession, but aiding the debt-burdened American homeowner appears to be on the agenda now that major financial companies and banks have been bailed out. Some of Bernanke’s comments in front of Congress are below: