WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke is warning 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 says Congress must raise the federal debt limit to prevent the government from defaulting on Treasurys. A failure to do so would impose heavy costs on the economy. He also says Congress needs to reduce the federal debt over the long run to ensure economic growth and stability.
Uncertainty about all these issues is likely holding back spending and investment and troubling investors, the Fed chairman says.
Bernanke is addressing the Economic Club of New York.
Friday, May 24 2013 8:10 PM EDT2013-05-25 00:10:09 GMT
AP photo
Resorts held a grand opening Thursday for Margaritaville, the $35 million restaurant, bar, and gambling complex that's part of a $70 million expansion and renovation.
Resorts held a grand opening Thursday for Margaritaville, the $35 million restaurant, bar, and gambling complex that's part of a $70 million expansion and renovation.
Friday, May 24 2013 8:56 AM EDT2013-05-24 12:56:43 GMT
U.S. orders for long-lasting manufactured goods rebounded in April, buoyed by more demand for military and civilian aircraft and an increase in business investment.
U.S. orders for long-lasting manufactured goods rebounded in April, buoyed by more demand for military and civilian aircraft and an increase in business investment.
Thursday, May 23 2013 10:17 PM EDT2013-05-24 02:17:32 GMT
New Jersey officials have seized inventory and demanded records from 29 bars and restaurants, nearly half of them TGI Fridays, that they say sold low-quality liquor to patrons who thought they were buying premium brands.
New Jersey officials have seized inventory and demanded records from 29 bars and restaurants, nearly half of them TGI Fridays, that they say sold low-quality liquor to patrons who thought they were buying premium brands.
Thursday, May 23 2013 1:43 PM EDT2013-05-23 17:43:15 GMT
Kerry Kennedy has joined farmworkers protesting outside Wendy's shareholder meeting in Manhattan.
Kerry Kennedy has joined farmworkers protesting outside Wendy's shareholder meeting in Manhattan. The protesters said Thursday they want Wendy's to sign an agreement to safeguard working conditions for Florida tomato pickers.
Thursday, May 23 2013 11:39 AM EDT2013-05-23 15:39:41 GMT
Average rates on fixed mortgage rose for the third straight week, hitting their highest levels since mid-March. Still, mortgage rates remained close to historic lows, a trend that should help sustain the housing recovery.
Average rates on fixed mortgage rose for the third straight week, hitting their highest levels since mid-March. Still, mortgage rates remained close to historic lows, a trend that should help sustain the housing recovery.
Wednesday, May 22 2013 10:21 PM EDT2013-05-23 02:21:55 GMT
Cooking used to be as simple as putting heat to meat…but not anymore. There are all sorts of high tech gadgets designed to help make our lives simpler and tastier.
Cooking used to be as simple as putting heat to meat…but not anymore. There are all sorts of high tech gadgets designed to help make our lives simpler and tastier.
Wednesday, May 22 2013 2:35 PM EDT2013-05-22 18:35:57 GMT
When it comes to breaking through to the other side, forget Victoria's Secret. Another company, Australia-based HommeMystere, has already done it with lingerie for men.
When it comes to breaking through to the other side, forget Victoria's Secret. Another company, Australia-based HommeMystere, has already done it with lingerie for men.
Wednesday, May 22 2013 10:04 AM EDT2013-05-22 14:04:00 GMT
Chairman Ben Bernanke is telling Congress that the U.S. job market remains weak and that it is too soon for the Federal Reserve to end its extraordinary stimulus programs.
Chairman Ben Bernanke is telling Congress that the U.S. job market remains weak and that it is too soon for the Federal Reserve to end its extraordinary stimulus programs.
Friday, May 24 2013 10:44 PM EDT2013-05-25 02:44:03 GMT
The unofficial start of summer is being met with not-so-perfect beach weather. Many beach communities had been hoping for good weather this Memorial Day weekend following the destruction caused by Superstorm Sandy.
The unofficial start of summer is being met with not-so-perfect beach weather. Many beach communities had been hoping for good weather this Memorial Day weekend following the destruction caused by superstorm Sandy. The Fox 5 weather team is calling for sunny skies on Sunday and Monday.
Friday, May 24 2013 9:34 PM EDT2013-05-25 01:34:31 GMT
Actress Amanda Bynes was arrested by New York City police after investigating a report of her allegedly smoking marijuana in the lobby of her Midtown Manhattan building.
Actress Amanda Bynes was arrested by New York City police after investigating a report of her allegedly smoking marijuana in the lobby of her Midtown Manhattan building.
Friday, May 24 2013 9:15 PM EDT2013-05-25 01:15:35 GMT
When workers installed one of the much-heralded bike-sharing stations on West 22nd Street near 10th Avenue, they put it right in front of the brownstones.
When workers installed one of the much-heralded bike-sharing stations on West 22nd Street near 10th Avenue, they put it right in front of the brownstones, impacting the entrances for homeowners and tenants.
Friday, May 24 2013 8:10 PM EDT2013-05-25 00:10:09 GMT
AP photo
Resorts held a grand opening Thursday for Margaritaville, the $35 million restaurant, bar, and gambling complex that's part of a $70 million expansion and renovation.
Resorts held a grand opening Thursday for Margaritaville, the $35 million restaurant, bar, and gambling complex that's part of a $70 million expansion and renovation.
Friday, May 24 2013 6:09 PM EDT2013-05-24 22:09:59 GMT
New York State has 17,000 highway bridges. There are some bad ones. The Tappan Zee Bridge, for example, is set to be replaced because of aging infrastructure.
New York State has 17,000 highway bridges. There are some bad ones. The Tappan Zee Bridge, for example, is set to be replaced because of aging infrastructure.
Friday, May 24 2013 5:33 PM EDT2013-05-24 21:33:47 GMT
New Jersey Transit bus riders will soon have a new way to get across the Hudson River: by boat. The agency is partnering with New York Waterways, which will provide ferry service to customers. The
New Jersey Transit bus riders will soon have a new way to get across the Hudson River: by boat. The agency is partnering with New York Waterways, which will provide ferry service to customers. The
