Bernanke Tells Senate: Focus on Growth Now, Deficit Cuts Later

By Suzy Khimm, Washington Post

Federal Reserve Chairman Ben Bernanke kept to his message of caution on Tuesday, warning a Senate panel that sharp spending cuts and tax increases scheduled to take effect in early 2013 could slow the nation’s economic recovery if federal officials do not take further action.

Despite the recent upturn in the jobs market, Bernanke said while testifying before the Senate Budget Committee on the state of the economy, “the pace of the recovery has been frustratingly slow.” He cautioned the lawmakers not to impede near-term growth in the name of cutting the long-term deficit, reiterating the arguments he made to the House Budget Committee last week.