In testifying before congress then federal reserve


We saw in the chapter opener that during 2013, Congress and President Obama were unable to reach an agreement to avoid the sequester, which involved a series of automatic cuts in federal government purchases. In testifying before Congress, then Federal Reserve Chairman Ben Bernanke said that the sequester "could create a significant headwind for the economic recovery."

a. What did Bernanke mean by a "headwind"?

b. Why would the sequester create a headwind for the economic recovery?

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Microeconomics: In testifying before congress then federal reserve
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