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News Summary: Bernanke warns about 'fiscal cliff'

Associated Press Published: November 20, 2012

BUDGET DEAL: Federal Reserve Chairman Ben Bernanke is urging Congress and the Obama administration to strike a budget deal to avert going over the fiscal cliff, the combination of tax increases and spending cuts that could push the country into a recession if they are allowed to go into effect in January.

DEBT CEILING: In a speech Tuesday, Bernanke also said Congress should raise the federal debt limit to prevent the country from defaulting on the government's debt.

NEXT YEAR: The Fed chairman said if Congress resolves these issues and comes up with a credible plan to deal with the country's long-term deficit problems it could "help make the new year a very good one for the American economy."