WASHINGTON (AFP) - Federal Reserve chairman Ben Bernanke supports Congressional action to stimulate the US economy, a US lawmaker said ahead of the central bank chief's testimony in Congress on Thursday.
New York Senator Charles Schumer, chairman of a Congressional committee tasked with proposing improvements to the US economy, described his conversation with Bernanke in an interview with CNBC late Wednesday.
"Ben Bernanke said we did need fiscal stimulus. He was concerned, of course, about the economy and felt that monetary policy, while very important, couldn't do the job alone," Schumer said.
"It's his tradition not to get into specifics, although he did say that the number one watch word that would make this effective is getting the money out quickly."
Schumer also described his conversation with Bernanke during a hearing of the Joint Economic Committee on stimulus plans, according to US media.
"He said that while he wasn't going to endorse a specific plan, if an economic-stimulus package was properly designed and enacted so that it enters the economy quickly, it could have a very positive effect on the economy," the Wall Street Journal quoted Schumer as saying.
In his testimony to US lawmakers, expected to start at 1500 GMT Thursday, Bernanke may also give clues about a Federal Reserve meeting at the end of the month.
The market widely expects the Fed to slash rates for the fourth straight meeting, cutting the current 4.25 percent rate by a hefty 50 basis points.
Bernanke last week said fresh interest rate cuts may be needed to shore up US economic growth amid a protracted housing slump and financial market turmoil.
The central bank chief said the outlook for economic growth in 2008 had "worsened" because of the housing meltdown, rising oil prices and weakened stock markets.
Schumer said there was consensus at the Joint Economic Committee meeting on Wednesday that Congress needs to move quickly to do its part to stimulate the economy.
"Everyone should put their ideological baggage aside, right and left, and try to sort of pump some money into the economy to get things going," Schumer told CNBC.
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