Feb. 7 (Bloomberg) -- 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 firstname.lastname@example.org
To contact the editor responsible for this story: Christopher Wellisz at email@example.com