Bernanke warns Congress to avoid ‘fiscal cliff’
Federal Reserve Chairman Ben Bernanke on Tuesday urged Congress and the Obama administration to strike a budget deal to avert tax increases and spending cuts that could trigger a recession next year. Without a deal, the measures known as the ‘‘fiscal cliff’’ will take effect in January. Bernanke also said Congress must raise the federal debt limit to prevent the government from defaulting on Treasurys debt. He said a failure to do so would impose heavy costs on the economy. He said Congress also needs to reduce the federal debt over the long run to ensure economic growth and stability.