–Fed’s Bernanke To Give Semi-Annual Mon Policy Testimony This Week
–Fed Chairman To Testify Before Senate Banking Panel, Then House Panel
–Senate Will Try Again To Pass Unemployment Insurance Extension
–President Obama Urges Senate To Pass UI Extension This Week

By John Shaw

WASHINGTON, July 19 (MNI) – Federal Reserve Board Chairman Ben
Bernanke will present the Fed’s semi-annual report on monetary policy
Wednesday to the Senate Banking Committee and Thursday before the House
Financial Services Committee.

Bernanke will testify Wednesday at 10 a.m. EDT and at 9:30 a.m. EDT
Thursday.

It seems likely the bulk of the congressional questioning will
focus on the status of the fragile economic recovery, with lawmakers
seeking some signal from Bernanke as to whether he believes another
round of fiscal stimulus is needed.

Lawmakers are also likely to question Bernanke on how — and when
— to address the nation’s soaring budget deficits and surging debt.

A subcommittee of the Senate Banking Committee will hold a hearing
Tuesday at 10 a.m. EDT on international cooperation on financial
regulations. Lael Brainard, Treasury’s undersecretary for international
affairs, will testify as will Fed governor Daniel Tarullo.

Congressional Democratic leaders are still trying to figure out how
to pass several fiscal items that are stalled.

Senate Democrats failed several weeks ago to secure the 60 votes
needed to pass a $109 billion package of tax cuts and benefit extensions
which the House recently approved.

The package would extend about a dozen tax cuts that expired at the
end of last year, expand unemployment benefits, and provide an extension
of current Medicare payments for doctors, the so-called “doc fix.”

Senate Democratic leaders now appeared poised to pass on Tuesday an
extension of UI benefits until November. The bill costing $34 billion
seems likely to pass after the new interim senator from West Virginia,
Carte Goodwin, is sworn in Tuesday.

President Obama, speaking Monday morning in the Rose Garden, urged
the Senate to pass the UI extension Tuesday as well as a small business
package. The Senate has been debating a small business package which
creates a $30 billion lending pool and $12 billion in tax incentives.

It has been stalled for several weeks because several Republican
senators want to amend the bill with other tax provisions including one
that sets the estate tax at 35% beginning next year.

Senate Democratic leaders are also hoping to pass an emergency
spending bill this week.

Before the July 4th recess, the House passed an $82 billion
emergency spending bill, which includes $37 billion for the wars in
Afghanistan and Iraq and $22 billion to prevent a wave of teacher
layoffs.

The Senate approved a $59 billion emergency bill earlier this
summer which did not have the teacher funding.

Democratic leaders need to reconcile these two bills and then pass
that compromise in both the House and Senate.

The House is expected to consider a host of oil spill research and
liability bills as well as bills to amend the flood insurance program.

** Market News International Washington Bureau: (202) 371-2121 **

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