Mr. Kennedy (raising his voice): “What are we going to tell the states? What are you suggesting that you’re going to do to help assist the states and what are you suggesting that we do to try to be a partner and help the states so they’re not going to have the results of a significant reduction in terms of services or also in terms of the taxes?”
Mr. Bernanke said the Fed would meet its mandate of “establishing a strong, growing economy” with high employment, price stability and financial stability.
Mr. Kennedy was unmoved, raising his voice: “I’m asking what we ought to be doing. What’s your position with regard to the states? Are you going to provide help and assistance to the states so that they do not have to cut back in terms of services?”
Mr. Bernanke (remaining calm): “You’re going to have to make a decision about whether you want to provide assistance to the states. … That’s a decision that’s up to Congress to make.”
Mr. Kennedy (growing much louder): “But what’s your recommendation. Should there be fiscal help and assistance? What’s your position?”
Mr. Bernanke (still calm): “That’s the Congress’s purview”
Mr. Kennedy (even louder): “What’s your recommendation. We have monetary and fiscal policy. You have responsibility in monetary, Congress does in fiscal policy. But you have to have some position in terms of the economic crisis that we’re facing.”
Mr. Bernanke (still calm): “No sir.”
Mr. Kennedy (at his loudest): “You’re not prepared to tell us, to try and provide help and assistance to the states … to try and help and assist families, working families.”
Mr. Bernanke: “I’m all in favor of assisting people, sir, but it’s Congress’ position”
Mr. Kennedy (at his loudest): “You don’t have a recommendation?”
Mr. Bernanke: “No sir.”
Mr. Kennedy then lowered his voice and moved on to another question.