Bernanke backs a new stimulus bill

WASHINGTON, Oct. 20 (UPI) -- U.S. Federal Reserve Chairman Ben Bernanke said Monday he supports a new economic stimulus package to improve the availability of credit.

In a prepared testimony for the House Budget Committee, Bernanke said "consideration of a fiscal package by the Congress at this juncture seems appropriate."

But, Bernanke said timing the spending to a "period in which economic activity would otherwise be expected to be weak," would get the most effect for the dollars spent.

"Any fiscal package should be well-targeted," he said. The program should also be designed "to limit longer-term effects on the federal government's structural budget deficit," he said.

A fiscal stimulus package should be targeted "to help improve access to credit by consumers, homebuyers, businesses and other borrowers," he said.

"Such actions might be particularly effective at promoting economic growth and job creation," Bernanke said.