Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
April 20, 2014

Bernanke Predicts "Very Good" 2013

Federal Reserve Chairman Ben Bernanke gave a speech at the New York Economic Club in which he predicted a “very good year” for the US economy if lawmakers successfully address the “fiscal cliff.”

Reuters: “The powerful central bank chief called for a credible long-term framework to put the federal budget on a sound path, but warned against action that would needlessly add to the headwinds facing the economy… he warned that a third headwind, U.S. fiscal policy, could intensify in coming quarters, with the drag from a tighter federal budget likely to outweigh looser budgets at the state and local level.”

Neil Irwin: “Bernanke seemed a bit more open than in the past to arguments that the deep crisis and recession of 2008-2009 may have reduced the nation’s economic potential… the Fed chief noted that ‘potential output may have grown more slowly than expected in recent years,’ though he added that this ‘seems at best a partial explanation of the disappointing pace of the economic recovery.’”

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