Economic Recovery: Options and Challenges

Today, the House Budget Committee is holding a hearing on the options and challenges of an economic recovery package.

Witnesses:

The Honorable Benjamin S. Bernanke

Chairman

Board of Governors of the Federal Reserve System

Martin N. Baily, Ph.D.

Senior Fellow

Brookings Institution

Iris J. Lav

Deputy Director

Center on Budget and Policy Priorities

William W. Beach

Director Center for Data Analysis

The Heritage Foundation

Watch the live web cast>>

Bloomberg reports:

Federal Reserve Chairman Ben S. Bernanke endorsed consideration of a fiscal stimulus package, citing the chance of a "protracted slowdown'' and a "weak'' outlook for the U.S. economy into next year

Lawmakers "should consider including measures to help improve access to credit by consumers, homebuyers, businesses and other borrowers,'' Bernanke said in testimony to the House Budget Committee. "Such actions might be particularly effective at promoting economic growth and job creation,'' he said, calling consideration of a stimulus "appropriate.''

Bernanke's remarks differ with the Bush administration's position and may give momentum to legislation being proposed by House Democrats; in January Bernanke told the same panel a stimulus "could be helpful'' and urged lawmakers to act "quickly.'' The impact of that $168 billion measure faded by July, and economists anticipate the economy will contract in the current quarter.

Read Chairman Bernanke's full opening remarks>>