HUFFINGTON POST: …“Monetary policy is not a panacea. It would be much better to have a broad-based policy effort addressing a whole variety of issues,” [Bernanke] said. “I would be much more comfortable if in fact Congress would take some of this burden from us and address those issues.”
Bernanke disappointed them. He promised no new stimulus, and instead pressed Congress to deal with the so-called “fiscal cliff” of spending cuts and tax increases, looming just months away.
“All of these measures together, if they all occur, will amount to a withdrawal of spending and an increase of taxation, depending on how you count, between 3 and 5 percent of GDP,” he warned, “which would have a very significant impact on the near-term recovery, whatever benefits you might see in those programs in the very long term.” … (more)
