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May 24, 2012

Economy: Economic News, Policy & Analysis - The Washington Post: Why can’t the Fed just prevent the ‘fiscal cliff’?

Economy: Economic News, Policy & Analysis - The Washington Post
Economy News: Get the latest headlines and in-depth coverage of economic news, policy, analysis and more from The Washington Post.
Why can't the Fed just prevent the 'fiscal cliff'?
May 24th 2012, 14:53

Say at the end of 2012, Congress can't strike a budget deal and we reach the dread "fiscal cliff." Taxes go up, spending gets slashed. Would the U.S. economy fall into recession? The Congressional Budget Office sure thinks so. But Ryan Avent wonders why the Federal Reserve couldn't just step in.

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