Faced with a deteriorating economy, Federal Reserve Chairman Ben Bernanke has indicated he is open to congressional and White House efforts to develop a rescue package to avert a recession.The fragile state of the economy has gripped Wall Street and Main Street and is a rising concern among voters. The situation has galvanized politicians — including those vying to be the next president — and poses the biggest test to Bernanke, who took over the Fed nearly two years ago.
Much attention will be focused on Bernanke’s testimony Thursday before the House Budget Committee for insights into what can be done to help blunt the ill effects of a deep housing slump and a credit crisis. The big worry is that those problems will force consumers to clamp down on their spending and businesses to put a lid on hiring, sending the economy into a nosedive.
Joint Economic Committee Chairman Sen. Charles Schumer, D-N.Y., said he had spoken with Bernanke on Monday and that the Fed chairman was “generally supportive” of lawmakers and Bush passing a stimulus bill.
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