Bernanke: GOP spending cuts would slow growth (AP)

[AP] - Federal Reserve Chairman Ben Bernanke says a House Republicans plan to cut $61 billion in federal spending this year would reduce economic growth and cause job losses.

Federal Reserve Chairman Ben Bernanke just blew two big holes in the political argument about the $85 billion in automatic across-the-board spending cuts slated to begin this Friday.

During Ben Bernanke’s Senate testimony this morning, Republicans again lambasted the Fed chairman for worrying too little about the inflationary potential of his low interest rate/quantitative easing monetary policy. From the WSJ:

Government Executive reports House passes balanced budget bill. The House on Wednesday passed legislation that directs President Obama to submit a balanced budget plan to Congress this spring.

WASHINGTON — Republicans proposed steep spending cuts on Monday but gave no ground on President Barack Obama’s call to raise taxes on the wealthiest in their first formal proposal to avert a “fiscal cliff” that could push the U.S. economy into recession. After days of stalemate, the Republican offer shows deep differences with President Barack Obama as the two sides work to head off across-the-board spending cuts and tax increases due to take effect in January.