Fed Chairman Ben Bernanke expressed his concerns

Tradervox (Dublin) - Fed Chairman Ben Bernanke expressed his concerns about the expiration of pro-growth policies to a group of senators today. According to some senators who attended the meeting, the Federal Reserve chairman was concerned about the expiration of some policies that were put in place to spur economic growth in United State.

Bernanke talked about the end of programs such as Bush tax cuts, extended unemployment benefits, budget cuts, and the payroll tax holiday according to North Dakota Democrat Kent Conrad. Further, Illinois Democrat, Richard Durbin, who also attended the meeting, indicated that the Federal Reserve Chairman stressed that if all these things occur at the time they are scheduled, they would drive the economy back to a worse recession.

According to his April 25 press statement; there are possible setbacks that could occur as a result of expiration of tax cuts and federal spending reductions. He warned that the economic progress seen so far could be reversed following a change in policy. He said that if no action is taken, the Federal Reserve will have no ability to offset the effects on the economy. In his discussions in the meeting with senators, Bernanke was keen not to get into politics surrounding these policies which was seen as a positive thing for him.

The concerns raised by Fed Chairman came as housing and labor market show some signs of improvement, and Bernanke has been keen to say that such progress should be guarded. His FOMC colleagues have shown their intention to keep the economy on the recovery track by keeping the interest rates at near zero. The Chairman also insisted that there are some progress being made but the economy requires some time to fully come out of the recession. He also warned on taking steps on policies that may undermine consumer confidence in the US economy.