Neil's Spotlight Fed chairman calls for congressional fiscal package
October 20, 2008
Federal Reserve Chairman Ben Bernanke says that weakening economic conditions warrant a "consideration of a fiscal package by the Congress at this juncture."
During a House Budget Committee Hearing on Monday (10/20/08), Chairman Bernanke called for a Recovery Package that should be "well targeted…boost overall spending and economic activity… [and] be aimed at redressing specific factors that have the potential to extend or deepen the economic slowdown" and be fiscally responsible -"to the extent possible, to limit longer-term effects on the federal government's structural budget deficit." (See Bernanke's prepared remarks for presentation to the House Budget Committee, 10/20/08.)
Meanwhile, one of President Bush's top economic advisers says that parts of the country are experiencing a recession. "We are seeing what I think anyone would characterize as a recession in certain parts of the country," Edward P. Lazear, chairman of the White House Council of Economic Advisers. (Washington Post, 10/20/08)
USA Today (10/20/08) reports "Since Oct. 1, new federal rules make it easier for households with income from combat pay, retirement accounts or education savings to be eligible for Food Stamps. The rules are part of the 2008 Farm Bill." Half of the 29-million Americans who receive this food aid are children, and this program serves one of every five of the nation's kids.
On Tuesday, October 21, the Financial Services Committee will hold a hearing on the need for broad regulatory restructuring and reform of the financial markets. Also on Tuesday, the Labor Department will release state unemployment numbers for September.
