Talk Radio News Service: News, Politics, Media

By Alexa Gitler
Talk Radio News Service

Chairman of the Federal Reserve System Dr. Ben Bernanke testified Wednesday before the House Budget Committee to provide an update on the nation's current economic outlook, and to share recommendations and plans that the Fed has for the future.

“The economy, supported by stimulative monetary policy and the concerted efforts of policymakers to stabilize the financial system, appears to be on track to continue to expand through this year and next” said Bernanke. “The latest economic projections, which were made near the end of April, anticipate that the real gross domestic product (GDP) will grow in the neighborhood of 3-1/2 percent over the course of 2010 as a whole and at a somewhat faster pace next year.”

Although Bernanke was hesitant to offer any specific advise to Congress on legislation, he urged that a plan for medium (3-5 years) and long-term sustainability would need to be put in place to retain the confidence of the American public and foreign markets.

“It is not realistic or advisable to try to balance the budget this year because that would be too wrenching a change, and the economy is still in weak condition,” he said.

Instead, Bernanke suggested that members of Congress use the rest of the year to start working together to develop a longer-term budget plan will bring the economy back to sustainability and persuade foreign markets to continue to have confidence in the U.S.'s economy. He added that his agency has already begun to plan accordingly.

“We hope to have a public report near the end of this year, early next year, but I want to assure you that the actions that will be taken will not wait for the report, but we will be immediately working with the banks,” he said.