Futures Market News
Fed chief warns of dangers to U.S. economy during luncheon with Democratic senators
May 14, 2012 10:29 AM
The expiration of assorted policies in the world's largest economic system is likely to spell trouble ahead, U.S. Federal Reserve chief Benjamin S. Bernanke told a gaggle of lawmakers last week, according to Bloomberg.
The Fed chief, during a lunch with Democratic senators, said the U.S. is hurtling toward a "fiscal cliff," Politico reports some attendees said. Assorted policies that endorse and encourage growth and development will expire and the economic system will suffer the consequences, Bernanke reportedly said.
Senator Richard Durbin, Illinois Democrat, told Bloomberg that Bernanke spoke with caution and was "careful not to get into the politics of any specific" policy, also noting "but I don't think there's anyone who quarrels with his premise."
Bernanke indicated programs like Bush tax cuts, the holiday for payroll taxes and elongated unemployment benefits are slated to end, Senator Kent Conrad, a North Dakota Democrat, told Bloomberg. The Fed chief also noted budget cuts are slated for implementation in January of next year.
Bernanke previously has noted dangers to growth because of the expiration of tax cuts and federal spending, according to Bloomberg.
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