With Congress in Gridlock, 'Fed's the Only Game in Town'

With Congress gridlock, the Federal Reserve is the hope for additional economic stimulus this election year, Sen. Charles Schumer (D-NY) told Ben Bernanke during his semiannual monetary policy testimony.

“ the political realities, particularly in this election year, I’m afraid the Fed’s the only game town,” Schumer said. “I would urge you to whatever actions you think would be most helpful supporting a stronger economic recovery.“

Schumer said current conditions, fiscal stimulus should be our first choice since it would be effective than monetary stimulus, but added: “The bottom is very simple, we’re not going to get the fiscal relief we want least over the next short while. Perhaps after November will.”

Bernanke told Schumer the Fed was prepared to take action.

"The complication of is we are dealing with less conventional tools," he said, "and we have to assessments about their efficacy and the costs and risks may be associated them."

He added, "It's very important we see sustained improvement the labor market and avoid deflation risk."

Still, Schumer essentially pleaded Bernanke to do something the economy.

"So to work, Mister Chairman," Schumer said.


Adapted and abridged from: CNBC, July 17, 2012.