{"id":38848,"date":"2012-12-13T11:22:00","date_gmt":"2012-12-13T11:22:00","guid":{"rendered":"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/policy-logjam-hurting-u-s-economy-bernanke\/38819\/"},"modified":"2012-12-13T11:22:00","modified_gmt":"2012-12-13T11:22:00","slug":"policy-logjam-hurting-u-s-economy-bernanke","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/policy-logjam-hurting-u-s-economy-bernanke\/38848\/","title":{"rendered":"Policy Logjam Hurting U.S. Economy: Bernanke"},"content":{"rendered":"<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - News Links *\/\ngoogle_ad_slot = \"3490797620\";\ngoogle_ad_width = 468;\ngoogle_ad_height = 15;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<p>While continued policy logjam in Washington with regard to deficit reduction issue was hurting the U.S. economy, according to the <a href=\"http:\/\/www.knowfinance.com\/federal-reserve-system-fed\/\" target=\"_blank\" rel=\"noopener\">Federal Reserve<\/a>\u2019s Chairman, Ben Bernanke, he is confident that lawmakers will succeed in finding a middle path before the year-end.<\/p>\n<p><span id=\"more-38848\"><\/span><\/p>\n<p>After winding up Fed\u2019s two-day FOMC meeting, Bernanke addressing a news conference said that both sides can prevent the U.S. economy from drifting away towards the edge of fiscal cliff\u2014a series of automatic spending cuts and tax hikes from Jan 1\u2014 through reaching a successful deal.<\/p>\n<p>Bernanke pointed out that lack of progress made in Washington has significantly hurt both investors\u2019 and consumers\u2019 sentiment with businesses forced to scale back on new investments or delay projects.<\/p>\n<p>\u201cClearly the fiscal cliff is having effects on the economy,\u201d said the Fed Chairman.<\/p>\n<p>Bernanke believes that both the Whitehouse and Congress would do a world of good to the U.S. economy if they resolve their differences as soon as possible.<\/p>\n<p>\u201cI&#8217;m hoping that Congress will do the right thing on the fiscal cliff; there is a problem with kicking the can down the road,\u201d added Bernanke.<\/p>\n<p>Bernanke reiterated his fear that lest the White House and Republicans fail to cut a deal then subsequent massive spending cuts and tax hikes would adversely impact the U.S. economy even as the <a href=\"http:\/\/www.knowfinance.com\/federal-reserve-system-fed\/\" target=\"_blank\" rel=\"noopener\">Federal Reserve<\/a> will be left without any tool to stimulate it.<\/p>\n<p>\u201cWe cannot offset the full impact of the fiscal cliff. It&#8217;s just too big,\u201d cautioned the Fed Chairman.<\/p>\n<p>Meanwhile, following latest round of talks on Wednesday, the White House indicated that Mr. Obama is prepared to go lower than his latest proposal of $1.4 trillion in new tax revenue over 10 years.<\/p>\n<p>When asked about whether that number stands any chance to get accepted by the GOP-controlled House, White House press secretary Jay Carney replied, \u201cThe president has made clear his willingness to negotiate and compromise.\u201d<\/p>\n<div class=\"nr_clear\"><\/div>\n<div id=\"nrelate_popular_2\" class=\"nrelate nrelate_popular nrelate_default nr_1col nr_text\"><\/div>\n<p>\t<!--[if IE 6]>\n\t\t<script type=\"text\/javascript\">jQuery('.nrelate_default').removeClass('nrelate_default');<\/script>\n\t<![endif]--><\/p>\n<p>\t<script type=\"text\/javascript\">\n\t\/* <![CDATA[ *\/\n\t\tnRelate.domain = \"www2.thestockmarketwatch.com%2Fstock-market-news\";\n\t\tvar entity_decoded_nr_mp_url = jQuery('<span\/>').html(\"https:\/\/web.archive.org\/web\/20121215005113\/http:\/\/api.nrelate.com\/mpw_wp\/0.51.2\/?tag=nrelate_popular&domain=www2.thestockmarketwatch.com%2Fstock-market-news&url=http%3A%2F%2Fwww2.thestockmarketwatch.com%2Fstock-market-news%2Fpolicy-logjam-hurting-u-s-economy-bernanke%2F38848&nr_div_number=2&maxageposts=7200&increment=1\").text();\n\t\tnRelate.getNrelatePosts(entity_decoded_nr_mp_url);\n\t\/* ]]&gt; *\/\n\t<\/script>\n\n\n<div class=\"nr_clear\"><\/div>\n\n\n\n\n<!-- AddThis Button BEGIN -->\n\n\n<div class=\"addthis_toolbox addthis_default_style addthis_32x32_style\">\n<a class=\"addthis_button_preferred_1\"><\/a>\n<a class=\"addthis_button_preferred_2\"><\/a>\n<a class=\"addthis_button_preferred_3\"><\/a>\n<a class=\"addthis_button_preferred_4\"><\/a>\n<a class=\"addthis_button_compact\"><\/a>\n<a class=\"addthis_counter addthis_bubble_style\"><\/a>\n<\/div>\n\n\n<script type=\"text\/javascript\">var addthis_config = {\"data_track_addressbar\":true};<\/script>\n<script type=\"text\/javascript\" src=\"http:\/\/s7.addthis.com\/js\/250\/addthis_widget.js#pubid=pennystocksfinder\"><\/script>\n<!-- AddThis Button END -->\n\n\n\n\n<p>More Posts by this author<\/p>\n\n\n\n<ul>\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/market-update-after-hours-december-14\/38950\">\nMarket Update After Hours December 14<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/fiscal-cliff-worries-drag-stocks-lower\/38949\">\nFiscal Cliff Worries Drag Stocks Lower<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/gold-prices-finish-nearly-flat-silver-prices-edge-lower\/38940\">\nGold Prices Finish Nearly Flat; Silver Prices Edge Lower<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/stocks-extend-losses-in-late-trading-6\/38938\">\nStocks Extend Losses in Late Trading<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/u-s-stocks-hover-in-red-territory\/38937\">\nU.S. Stocks Hover in Red Territory<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/united-technologies-utx-expects-2012-earnings-per-share-of-approximately-5-32\/38921\">\nUnited Technologies &#8211; UTX &#8211; Expects 2012 Earnings Per Share Of Approximately $5.32<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/chipmos-imos-reports-november-2012-revenue\/38922\">\nChipMOS &#8211; IMOS &#8211; Reports November 2012 Revenue<\/a><\/li>\n\n\n\n<\/ul>\n\n\n\n\n\n\n<hr>\n\n\n\n\n\n<table style=\"border:none;margin:0;\">\n\n\n<tr>\n\n\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/web.archive.org\/web\/20121215005113im_\/http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/wp-content\/uploads\/userphoto\/5.jpg\" alt=\"edliston\" width=\"125\" height=\"125\" class=\"photo\"><\/td>\n\n\n\n\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n\n\n<div style=\"font-size:11pt;\"><b>Post Written By: Ed Liston <\/b><\/div>\n\n\n\n\n<div style=\"font-size:10pt;\">\n\nEd Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.\n<\/div>\n\n\n<\/td>\n\n<\/tr>\n\n<\/table>\n\n\n\n\n\n\n<script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"pub-1408583772585547\";\n\/* 336x280, created 7\/9\/11 *\/\ngoogle_ad_slot = \"3552319058\";\ngoogle_ad_width = 336;\ngoogle_ad_height = 280;\n\/\/-->\n<\/script>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script>\n\n\t\t\t\t\t\t\n\n\t\n\n<div style=\"margin:5px;margin-bottom:20px;font-size:11pt;\">&laquo; <a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/\">Return to Stock Market News<\/a> &laquo; <\/div>\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>While continued policy logjam in Washington with regard to deficit reduction issue was hurting the U.S. economy, according to the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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