Media Stimulate Recession by Twisting Fed Chairman's Words

On the day after Federal Reserve Chairman Ben Bernanke sat before Congress and said the Fed is “not forecasting a recession,” CBS’s Bianca Solorzano reported on the “Early Show” that “Bernanke confirmed recession fears.”

Anthony Mason reported on the “CBS Evening News” that night that Bernanke “was telling Congress the economy needs a rescue package, and the sooner the better.”

On NBC’s “Nightly News,” reporter Erin Burnett summarized Bernanke’s testimony: “Guess what? It’s going to get worse before it gets better.”

But Bernanke didn't say that.

What the Fed chairman did say was that “recent indications suggest … that the economy has softened somewhat and that the growth prospects for 2008 are certainly below that of last year,” adding later that “again, we’re not forecasting recession but rather at this point slow growth.” [as low as 1.7% according to CBO testimony yesterday]

Instead of explaining the nuances of Bernanke’s talk, reporters went for a simplistic – and unfortunately, misleading – characterization, selectively quoting from Bernanke’s testimony before Congress to suggest he predicted a recession and called for an immediate “stimulus package.”

[more, recommended > http://www.businessandmedia.org/articles/2008/20080123110534.aspx ]