Bernanke Defends Bond-Buying Plan on Capitol Hill

November 17, 2010 - 1:50 PM

Washington (AP) - Federal Reserve Chairman Ben Bernanke is meeting with lawmakers on Capitol Hill to defend the Fed's $600 billion Treasury bond-purchase plan to rejuvenate the economy.

The Fed chief was meeting privately Wednesday with the Senate Banking Committee. Bernanke's briefing comes as some Republicans are attacking the Fed's bond-purchase program on multiple fronts. They say they fear the plan will spur inflation. They also say the Fed is overstepping its bounds, arguing that the Fed is printing money to pay for the government's massive debt.

Bernanke has rejected those criticisms. He says the Fed's program is needed to help the economy grow faster and to reduce high unemployment.