From NPR News in Washington, I'm Lakshmi Singh.Federal Reserve Chairman Ben Bernanke saysthe sharp government spending cuts set to take effect Fridaywill create a significant headwind for the economic recovery.Bernanke has delivered the Fed semi-annual report to the Senate Banking Committee.NPR's Craig Windham says Bernanke is defending the Fed's bond-buying program,which is aimed at keeping borrowing costs low.The Fed is buying about 85 billion dollars in treasury and mortgage back securities a month.Bernanke says that has been good for the economy."Notably, keeping longer term interest rate slow has helped spark recovery in the housing marketand led to increase sales and production of automobiles and other durable goods."Bernanke says while the Fed is trying to stimulate the economy,the upcoming across-the-board spending cuts known as the sequesterwould have the opposite effect, restraining growth.He says there’s a better way to bring down the deficit."I think an appropriate balance would be to introduce these cuts more graduallyand to compensate with larger and more sustained cuts in the longer runto address our long-run fiscal issues."Craig Windham, NPR News, Washington.Chuck Hagel is a crucial step close to becoming secretary of defense.Today lawmakers voted to end the GOP filibuster on the former Republican senator,clearing the way for a final up or down confirmation vote.Hagel encountered resistance after breaking with fellow Republicanson various aspects of foreign policy including Iran and nuclear arms.Speaking of, the first day of nuclear talks in Kazakhstan has ended
