Bernanke Jabs Back at Fed's Critics In Congress; Lawmakers More Vocal About Rescue Program As Recession Persists
Federal Reserve Chairman Ben S. Bernanke launched a more aggressive defense of the central bank's multitrillion-dollar campaign to prop up the economy, as government bailouts came under fire Tuesday from all directions on Capitol Hill.</br></br>Lawmakers were reluctant to second-guess rescues and interventions in the darkest days of the financial crisis. But now, with the financial system stabilizing and the unemployment rate at 9.5 percent and climbing, there is deepening frustration in Congress and around the country that there is not more to show from the trillions of dollars the government has put at risk.</br></br>Bernanke argued before the House Financial Services Committee that the Fed's actions helped prevent a global economic calamity, and he promised an exit strategy to head off fears of inflation. His comments came as other government officials were also sharply criticized for their handling of the financial rescue.</br></br>Just down the hall, a separate House committee assailed the Treasury Department's execution of the financial system rescue, arguing that it has been deployed without enough accountability. "The taxpayers now have a $700 billion spending program that's being run under the philosophy of 'don't ask, don't tell,' " said Rep. Edolphus Towns (D-N.Y.) in a hearing on the Troubled Assets Relief Program.</br></br>In the same building, members of a third committee were enraged that Chrysler and General Motors dealerships in their districts were being shut down despite government bailouts of the companies. [Related stories, A11.]