Bernanke to Democratic senators: U.S. barreling toward 'fiscal cliff'

Posted On: May 14, 2012
The globe's largest economy may be in peril because a variety of policies that support development and growth are set to expire, the chairman of the U.S. Federal Reserve told a small collection of lawmakers last week, Bloomberg reports.

Senator Kent Conrad, a North Dakota Democrat, told the news source that Ben S. Bernanke noted the programs like the Bush tax cuts, payroll tax holiday and prolonged unemployment benefits are slated to wrap up. The Fed chief also discussed budget cuts scheduled to be implemented in January of next year.

"It's clear to all of us and he stressed that if all of these things occur it could drive us back into a worse recession," Senator Richard Durbin, Illinois Democrat, told Bloomberg. "The sooner we can resolve these issues, the more likely we are to give confidence to consumers and investors across America."

Warning about perils to growth has been a topic Bernanke previously has discussed due to tax cuts expiring and notable spending at the federal level.

Politico reports the Fed chief warned the Democrats at a Thursday lunch that the U.S. is hurtling toward a "fiscal cliff," attendees told the news source.

Category: Industry News


Foreign Exchange Services for Business

With a focus on payment services, Western Union Business Solutions enables businesses of all sizes to send funds internationally through our global payment solutions.

See our available FX payment services