"Coming together to find fiscal solutions will not be easy, but the stakes are high," he said.
Bernanke reminded the policymakers that the federal budget is on "an unsustainable path" and they should avoid "unnecessarily adding to the headwinds that are already holding back the economic recovery."
He pointed out that the great recession may have reduced the U. S. economy's potential growth rate, and the economy has continued to recover but at a pace slower than the expectation of the Fed officials.
Bernanke hinted little in his speech on whether the Fed would take additional easing measures to fill the gap for the Operation Twist, a program set to expire at the year end. Instead, he noted that "cooperation and creativity to deliver fiscal clarity - in particular, a plan for resolving the nation's longer-term budgetary issues without harming the recovery - could help make the new year a very good one for the American economy."
Landmark building should respect the public's feeling
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