WASHINGTON — Federal Reserve Chairman Ben Bernanke Tuesday urged Congress to replace the set of harsh, automatic budget cuts that will take effect on March 1, arguing that this "additional near term burden" is the last thing that the ongoing economic recovery needs.

In his prepared semiannual testimony on the economy and monetary policy to the Senate Banking Committee, Bernanke stressed to lawmakers that even with the aggressive actions taken by the central bank to boost growth, the U.S. economy's performance over the near term and in the longer run "will depend importantly" on the course of fiscal policy.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.