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    Schumer: For economy, Fed is 'only game in town'

    New York Senator: Congress deadlocked on budget deal, Fed "only game in town" to help economy

    By The Associated Press | Associated Press – Tue, Jul 17, 2012

    WASHINGTON (AP) -- An election-year budget standoff has immobilized Congress — and the Federal Reserve is the only government agency than can help the economy.

    That was the view pushed Tuesday by a leading Democrat as Fed Chairman Ben Bernanke testified to the Senate Banking Committee.

    "Given the political realities of this year's election, I believe the Fed is the only game in town," Sen. Charles Schumer, D-N.Y., said. "I would urge you, now more than ever, to take whatever actions are warranted."

    "So get to work, Mr. Chairman," Schumer added.

    Without a budget deal, tax increases and spending cuts will take effect Jan. 1.

    Bernanke acknowledged that the economy could suffer a recession if Congress doesn't reach a deal. But he was noncommittal about taking further steps.

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