Larry Kudlow: Fed can't solve every fiscal problem

Federal Reserve chairman Ben Bernanke threw a curveball in his midterm report to Congress this week. The Fed view of the economy has been downgraded since it last reported in February. Although the official Fed forecast for 2010-11 is still 3 percent to 4 percent real growth, Bernanke sounded particularly gloomy when he characterized the economy as “unusually uncertain.”

And he indicated that the majority view of the Fed Board of Governors and Reserve Bank presidents is that the risks to growth are “weighted to the downside.”