Bernanke Says Expiration of Tax Cuts Risks Slowing Recovery
Federal Reserve Chairman Ben S. Bernanke said U.S. lawmakers risk slowing the economic rebound if they let tax cuts expire on Jan. 1, 2013, without “compensating action.”
“There will be a very sharp change in the stance of the federal government, which by itself -- with no compensating action -- would slow the recovery,” Bernanke said in testimony to the Senate Budget Committee today.
“As we get closer to Jan. 1, and Congress has not given a clear road map for how it plans to proceed, that would certainly affect planning business decisions, household decisions.”
To contact the reporter on this story: Aki Ito in San Francisco at aito16@bloomberg.net
To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net
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