With Congress in gridlock, the Federal Reserve is the only hope for additional economic stimulus during this election year, Sen. Charles Schumer (D-NY) told Ben Bernanke during his semiannual monetary policy testimony.
“Given the political realities, particularly in this election year, I’m afraid the Fed’s the only game in town,” Schumer said. “I would urge you to take whatever actions you think would be most helpful in supporting a stronger economic recovery.“
Schumer said under current conditions, fiscal stimulus should be our first choice since it would be more effective than monetary stimulus, but added: “The bottom line is very simple, we’re not going to get the fiscal relief we want at least over the next short while. Perhaps after November we will.” (Related: Going Over the 'Fiscal Cliff' Could Cause Recession).