In boost for GOP plan, Fed chief says cuts won't derail recovery

[Freddie Stubbs]

Source: The Hill

Federal Reserve Chairman Ben Bernanke says a plan from House Republicans to cut $61 billion in spending this year would not harm economic growth.

The GOP's proposed spending cuts, passed as part of a continuing resolution, would probably reduce "growth on the margins" and lower gross domestic product by only one- or two-tenths of a percent, Bernanke told the Senate Banking and Urban Affairs Committee.

The Fed chairman's estimate contrasts with recent reports from Goldman Sachs and Moody's Analytics that predicted economic harm from a $61 billion spending reduction.

The Goldman Sachs report released last week predicted that the Republican spending cuts would slow growth by as much as 2 percentage points in the second and third quarters of this year. Senate Democrats pounced on the analysis to argue that Republicans were trying to "drag our economy back into a recession."

Read more: http://thehill.com/blogs/on-the-money/801-economy/146705-bernanke-says-house-republican-plan-would-have-small-effect-on-growth

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FYI, President Obama appointed Bernanke to a second term as Federal Reserve Chairman, so he cannot replace him until 2014.

[Name removed]

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[Bandit]

2. Just like when Greenspan said Bush* tax cuts wouldn't add to the Deficit..

How can layoffs of thousands of people not effect the economy? That is exactly what is going to happen when such cuts are actually put into effect..

[KansDem]

4. Just like when Cheney said "Deficits don't matter."

Really, Dick? Then why all the hoopla now?

[EC]

3. So are we the margins?

That will be affected?

[Poboy]

13. Margins in paper are ditches in the real world.

Yes, we will be thrown into the ditch. Useless eaters anyway.

[defendandprotect]

5. What recovery? Two years of stimulus at less than 25% of what was needed re economists -- !!!

It's petered out and gone now --

We need to put a stop to the FEDERAL RESERVE -- a private bank -- dictating and

running our economy and unemployment!!

When are we going to see how wrong this is --

It's a job Congress should be doing --

We don't elect the FEDERAL RESERVE -- nor it's Chairman -- !!!

We do allegedly elect Congress -- but would probably be more sensible to get rid of

the GOP voting computers and actually check whether that's myth or reality!!



:evilgrin:

[defendandprotect]

6. + FED has already said they see no employment recover for 2011 -- !!!! WTF?

Obama -- Congress -- Democrats -- anyone home????

[Hannah Bell]

7. liar.

[Kingofalldems]

8. Unrec for anti-Democratic party tone

And the last sentence. Seems like taunting to me.

[Freddie Stubbs]

11. Facts are presented to provide information to readers. If you feel taunted by them, perhaps

politics isn't for you.

[TheKentuckian]

14. Anti-Democratic tone? What are you looking for fluff and misinformation?

Are we supposed to ignore all reality that isn't some ringing endorsement of the President, Administration, and Party?

Bernake is a George W Bush appointed Republican and if he reflects poorly on our party and leaders then he should not have been renominated and if renominated then he should not have been confirmed.

What is anti-Democratic party is we've elected two Presidents and they have left the Zombie Reagan neoliberal, Reichwing hacks to stay in charge of monetary policy in this country.

You know what really makes the party look bad is doing nothing about the crooks running our economy into the ground and playing along with funneling our national (and global) wealth to a few wealthy anti-Americans and breaking our working class while pissing on the poor (with a fee for the service).

[ixion]

9. It can't harm growth, because there is no recovery to harm...

Nice try, Ben.

[ProSense]

10. Sounds like Republican spin. Bernanke is not

the last word. He has his opinion. Still, MSNBC

<...>

Bernanke estimated the cuts would result in the reduction of “several tenths” of a percent on GDP – far less than the two percent projected in a recent report by Goldman Sachs.

A reduction in federal spending of “$60 billion to $100 billion is not sufficient to get to that level,” Bernanke said. “But it would, of course, have the effect of reducing growth on the margin, certainly.”

<...>

So Bernanke believes these cuts will shave “several tenths” off GDP and not kill as many jobs as Zandi estimated?

This is acceptable?

[DirkGently]

12. Carrying on the proud Greenspan tradition of assuming conservative bullshit has magical powers?