Fed Chief: Tightening Fiscal Policy Could Derail Recovery

""Speaking"":http://www.federalreserve.gov/newsevents/testimony/bernanke20120607a.htm before the Joint Economic Committee, ""Federal Reserve Chairman Ben Bernanke"":http://www.federalreserve.gov/aboutthefed/bios/board/bernanke.htm offered three guidelines for fiscal policymakers Thursday. The federal budget must be put on a sustainable long-run path, he said, adding that significantly tightening fiscal policy could impede the economic recovery. Bernanke called on Congress to ""promote a stronger economy in the medium and long term through the careful design of tax policies and spending programs."" The economy, according to Bernanke, is seeing a meager recovery.

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