Bernanke sumnja u rezultat financijske stimulacije

MORE INFO: Bernanke said the effects of the stimulus plan is still subject to much uncertainty. And he said, although the surge in federal spending will mean a surge in federal debt, the circumstances require it.

Jon Decker reports.

STORY:

On a day in which the government reported pending sales of existing U.S. homes fell sharply in January, Federal Reserve Chairman Ben Bernanke urged bold action to pull the economy out of a deepening slump -- and expressed his confidence in the nearly $800 billion economic stimulus plan, recently signed by President Obama.

SOUNDBITE: Federal Reserve Chairman Ben Bernanke saying (English):

"By supporting public and private spending, the fiscal package should provide a boost to demand and production over the next two years as well as mitigate the overall loss of employment and income that would otherwise occur."

But Bernanke said the effects of the stimulus plan is still subject to much uncertainty. And he said, although the surge in federal spending will mean a surge in federal debt, the circumstances require it.

SOUNDBITE: Federal Reserve Chairman Ben Bernanke saying (English):

"The alternative could be a prolonged episode of economic stagnation that would not only contribute to further deterioration in the fiscal situation, but would also imply lower output, employment, and incomes for an extended period."

Bernanke told members of the Senate Budget Committee that whether the government needs to increase the size of a $700 billion bank rescue package depends on government evaluations of lenders and the course of the U.S. economy.

Jon Decker, Reuters.