Goose economy, Bernanke and Bush say

The Fed chief warned, however, that a stimulus package provided at the wrong time could prove "counterproductive."
JAN 17, 2008
By  Bloomberg
Federal Reserve chairman Ben S. Bernanke and a president George W. Bush endorsed a fiscal stimulus to lift to a sputtering economy. "The President does believe that over the short term that to deal with this softening in the economy that some boost is necessary," White House spokesman Tony Fratto said, according to a report in The Wall Street Journal. In testimony delivered to the House Committee on the Budget, Mr. Bernanke today said that the idea of an economic stimulus package "could be helpful in principle," and combining it with a monetary stimulus may provide broader support the economy than monetary actions alone. He said that the design and implementation of such as program is "critically important," but cautioned that a stimulus package provided at the wrong time or compromised fiscal disciple in the longer term could prove "counterproductive." Mr. Bernanke also suggested that a fiscal stimulus package should be "implemented quickly" and structured so that its effects on aggregate spending are felt as "much as possible" within the next year. However, Mr. Bernanke cautioned that a stimulus that comes too late could be "actively destabilizing" if it comes at a time when growth is already improving. He also insisted that any stimulus should be "explicitly temporary," in order to avoid unwanted stimulus beyond the near-term horizon and avoid an increase in the federal government's structural budget deficit.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.