Federal Reserve Chairman Ben Bernanke said Thursday he backs a quickly implemented fiscal stimulus package to complement the Fed's monetary policy aimed at boosting the slowing U.S. economy.
His remarks in Washington during testimony before the House Budget Committee come after the White House and Congress are beginning to discuss a stimulus package. The White House acknowledged that President Bush is in favor of short term action.
I agree that fiscal action could be helpful in principle, as fiscal and monetary stimulus together may provide broader support for the economy than monetary policy actions alone, he said.
The stimulus should be implemented quickly and structured so that its effects on aggregate spending are felt as much as possible within the next 12 months or so.
He added that longer-term budget discipline should not be compromised.
Separately, Rep. John Boehner, the Republican House minority leader from Ohio said the package could cost between $100 and $150 million, according to Reuters.