Federal Reserve Bank Chairman Ben Bernanke testified Monday before a House panel throwing his support behind a plan to limit the risk of a "protracted slowdown" in the economy.
Budget Committee Member Paul Ryan (R-Janesville) railed against a plan endorsed by Democrats. He cited Congressional Budget Office data that predicts a potential deficit of up to $750 billion this year, before the stimulus package. The Democrats plan he claims would lead to a weakening of the US dollar and bring the deficit to a trillion dollars. He says the package would show a "little pop" in GDP statistics but would be misleading regarding the health of the economy.
The Janesville Republican says policy makers must focus on how to "grow the economy."
Chairman Bernanke is not endorsing any particular bill or dollar amount but is encouraging action by Congress. Last spring, Congress passed a $100 billion stimulus package that featured a $600 per person tax rebate.
