In boost for GOP plan, Fed chief says cuts won't derail recovery

Townhall.com Staff
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Posted: Mar 01, 2011 1:40 PM

Federal Reserve Chairman Ben Bernanke says a plan from House Republicans to cut $61 billion in spending this year would not harm economic growth.

The GOP's proposed spending cuts, passed as part of a continuing resolution, would probably reduce "growth on the margins" and lower gross domestic product by only one- or two-tenths of a percent, Bernanke told the Senate Banking Committee.