Fed chairman says US recovery remains ‘disappointingly slow’ and says expiration of Bush-era cuts poses ‘substantial threat’ Ben Bernanke, the chairman of the Federal Reserve, has warned that the fiscal cliff poses a “substantial threat” to the US recovery. In his first speech since president Barack Obama’s re-election, Bernanke said that the year-end expiration of Bush-era tax cuts and imposition of deep spending cuts would send the US “toppling back into recession.” Speaking at the New York Economic Club, Bernanke called the US recovery “disappointingly slow”. He added: “Indeed, since the recession trough in mid-2009, growth in real gross domestic product (GDP) has averaged only a little more than 2% per year.” He acknowledged some positive indicators: the job market continues to improve, inflation remains low and the housing market appears to be improving. But Bernanke said the Federal Reserve remained concerned about the fragility of the recovery, not least because of threats from abroad.

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