WARNING: Country headed for ‘massive fiscal cliff’

Bernanke warns lawmakers country headed for ‘massive fiscal cliff’
By Peter Schroeder

Federal Reserve Chairman Ben Bernanke cautioned Congress against taking the nation over a “massive fiscal cliff” at the end of the year, asking lawmakers to come up with more gradual plans to implement major policy reforms.

The central bank head struck a nervous tone Wednesday about what the end of the year could hold for the fledgling economic recovery, given the slew of overhauls to taxes and spending set to occur if Congress does not step in.

“Under current law, on January 1, 2013, there’s going to be a massive fiscal cliff of large spending cuts and tax increases,” he told the House Financial Services Committee. “I hope that Congress will look at that and figure out ways to achieve the same long-run fiscal improvement without having it all happen at one date.”  Read the story here.