Ben Bernanke has warned that the fiscal cliff is already dragging down the US economy and begged political leaders to find a rapid solution.
The Fed chairman’s warning, made in a speech in New York yesterday, ramps up pressure on Congress to tackle the tax rises and spending cuts due to take effect automatically at the end of the year.
“Uncertainty about how the fiscal cliff, the raising of the debt limit and the longer-term budget situation will be addressed appears already to be affecting private spending and investment decisions,” Mr Bernanke said.
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