Bernanke Abandons Assessment of Lessening Growth Risk (Update4)
By Craig Torres and Scott Lanman
July 15 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke abandoned his June assessment that the threat of an economic downturn had diminished, telling lawmakers that growth and inflation risks are increasing.
There are ``significant downside risks to the outlook for growth,'' and ``upside risks to the inflation outlook have intensified,'' Bernanke said in semiannual testimony on the economy to the Senate Banking Committee in Washington. [...]
Arrrgh... So stupid!!! Why?
"Bernanke said consumer spending is ``likely to be restrained over coming quarters,'' and businesses are ``likely to be cautious with their spending in the second half of the year.''
Federal tax rebates provided ``timely support'' for strained households, he said. That's helped household spending hold up better than was forecast, he added. "
Yeah... so economic stimulus checks provided the TEMPORARY stimulus
I expected. What Bernanke is saying is that to save the economy, we need people to spend money. You want money?
LOWER TAX RATES!!!
DO IT NOW!!!
MAKE IT RETROACTIVE!!!
... then the Marxist liberal will whine: Then how will we pay for all out social
programs?Lower tax rates increase revenue.
...But then the US tax code isn't so much about revenue as it is about applying economic pressure to force the populace to conform to certain behaviors.