Business
U.S. Federal Reserve Chairman Ben Bernanke, center, and European Central Bank President Jean Claude Trichet, right, take part in the International Monetary and Financial Committee (IMFC) meeting during the IMF/World Bank annual meetings in Washington, Saturday, Sept. 24, 2011. AP Photo/Jose Luis Magana) U.S. Federal Reserve Chairman Ben Bernanke, center, and European Central Bank President Jean Claude Trichet, right, take part in the International Monetary and Financial Committee (IMFC) meeting during the IMF/World Bank annual meetings in Washington, Saturday, Sept. 24, 2011. AP Photo/Jose Luis Magana)  

Bernanke warns lawmakers nation headed for ‘massive fiscal cliff’

Federal Reserve Chairman Ben Bernanke warned Congress Wednesday it risked taking the nation over a “massive fiscal cliff” at the end of the year.

The central bank’s boss warned expiring tax cuts and spending cuts set to be triggered at the end of the year could hurt the economic recovery.

“Under current law, on January 1, 2013, there’s going to be a massive fiscal cliff of large spending cuts and tax increases,” Bernanke told the House Financial Services Committee. “I hope that Congress will look at that and figure out ways to achieve the same long-run fiscal improvement without having it all happen at one date.”

Full story: Bernanke warns lawmakers nation headed for ‘massive fiscal cliff’