Financial Times FT.com

Fed chief backs new stimulus before year's end

By Krishna Guha in Washington

Published: October 21 2008 03:00 | Last updated: October 21 2008 03:00

The prospect of a second fiscal stimulus package being approved before the end of the year rose yesterday after Ben Bernanke backed the notion and the White House indicated President George W. Bush was "open to the idea".

The Federal Reserve chairman told the House budget committee: "With the economy likely to be weak for several quarters and with some risk of a protracted slowdown, consideration of a fiscal package by Congress at this juncture seems appropriate."

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