Arab Today, arab today euro crisis \fiscal cliff\ menace us economy
Last Updated : GMT 03:41:19
Arab Today, arab today
Arab Today, arab today

Central bank would launch a program to help growth

Euro crisis, \'fiscal cliff\' menace US economy

Arab Today, arab today

Arab Today, arab today Euro crisis, \'fiscal cliff\' menace US economy

Federal Reserve Chairman Ben Bernanke
Washington - AFP

Federal Reserve Chairman Ben Bernanke The European crisis and mandated budget cuts and tax hikes pose important risks for the US economy, Federal Reserve Chairman Ben Bernanke told Congress Thursday. But with the economy motoring along at a \"moderate\" pace, he also gave no hint as to whether the central bank would launch a new stimulus program to help growth.
Bernanke kept at arm\'s length from the idea, despite recent comments by several other senior Fed officials that more stimulus could be merited by the current 2.0 percent pace of growth.
\"We have made no decisions,\" Bernanke said when asked by Congress\'s joint economic committee about the possibility of a \"QE3\" quantitative easing program to further push down interest rates.
However, he added, \"I wouldn\'t want to take anything off the table at this juncture.\"
Bernanke said that the US economy was showing some signs of strength, including in exports and consumer spending.
\"Economic growth appears poised to continue at a moderate pace over coming quarters,\" he said.
He said last year\'s increases in household spending have been sustained and that falling energy prices should help offset slow income growth for Americans.
He also said that inflation should stay at or below 2.0 percent, within the central bank\'s comfort zone.
And despite Europe\'s problems, too, demand for US exports \"has held up well.\"
But the economy remains frail, households and businesses deeply cautious, the housing market still depressed, and unemployment stubbornly high.
Moreover the economy remains vulnerable to two potential shocks: the eurozone crisis and the year-end \"fiscal cliff\".
The eurozone turmoil has already strained global financial markets, and it has pushed a cloud over US consumer and business confidence, he said.
\"The situation in Europe poses significant risks to the US financial system and economy and must be monitored closely,\" he warned.
\"European policymakers have taken a number of actions to address the crisis, but more will likely be needed to stabilize euro-area banks, calm market fears about sovereign finances, achieve a workable fiscal framework for the euro area, and lay the foundations for long-term economic growth.\"
The other looming threat is the legislation in place that could both raise taxes for Americans and force a drastic cut in government spending at the year\'s end, moves that economists say could drive the country back to recession if not changed.
\"The so-called fiscal cliff would, if allowed to occur, pose a significant threat to the recovery,\" Bernanke said.
The budget cuts and tax hikes already mandated -- the product of an unhappy political compromise last year in Congress -- could amount to 3-5 percent of gross domestic product, Bernanke said -- \"which would be a very significant impact on the near-term recovery.\"
\"What I am saying is that in ways that are up to Congress, steps should be taken to mitigate that overall impact... What is particularly striking here is that this is all preprogrammed,\" he said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today euro crisis \fiscal cliff\ menace us economy Arab Today, arab today euro crisis \fiscal cliff\ menace us economy

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today euro crisis \fiscal cliff\ menace us economy Arab Today, arab today euro crisis \fiscal cliff\ menace us economy

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Malaysia Airlines picks new CEO

GMT 12:54 2017 Saturday ,21 October

Malaysia Airlines picks new CEO
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Residents get glimpse of Raqa in ruins

GMT 07:10 2017 Saturday ,21 October

Residents get glimpse of Raqa in ruins
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Actress Mona Zaki praises husband’s role

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 09:56 2017 Friday ,20 October

Privacy Groups Warn of Perils

GMT 08:04 2017 Thursday ,19 October

Second US judge orders freeze

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday