Federal Reserve Chairman Bernanke returns to Capitol Hill for a second day to present his agency’s semi-annual monetary policy report to House lawmakers.
Chairman of the House Financial Services Committee Rep. Spencer Bachus (R-AL) is steering the conversation to U.S. interest rates and entitlement reform. In the past, Rep. Bachus has praised Bernanke’s tenure as Chairman and pointed to continuing job growth.
During questioning Tuesday about sequestration and the deficit, Chairman Bernanke told the Senate Banking Committee that ”if the fiscal cliff is allowed to happen it will certainly have negative affects on recovery.” Sen. Bob Corker (R-TN) challenged the Chairman to take a position on the partisan debate between spending cuts and tax increases. Chairman Bernanke refused to take a side.
The Federal Reserve reports to the Senate Banking Committee and the House Financial Services Committee twice a year on the conduct of monetary policy and the state of the U.S. economy.