Extremist politicians in both parties are the biggest risk to the economy, Vanguard founder and former CEO John Bogle says.
"We seem to be losing the ability to govern ourselves," he told CNNMoney.
"That is a terrible thing if we can't govern ourselves. We ought to be able take the kind of actions that are good for our country rather than."
(Vanguard file photo)
The Federal Reserve is doing all it can to fix the economy but cannot take the political actions needed get the economy back on track, he said.
Federal Reserve Chairman Ben Bernanke’s recent statement on possible Fed actions was "very wise" and "very courageous," Bogle said.
Essentially, Bernanke said the Fed has done everything it can but cannot take the necessary political actions, such as continuing tax breaks, extending unemployment compensation, and waiving Social Security fees.
The economy needs stimulus and jobs, Bogle said, but politicians seem unable to deliver.
"Wisdom and courage are not the first two words that come to my mind when I think of politicians down there in the nation's capital," he said.
"They're extreme and doctrinaire. They won't deviate from party lines on both sides."
In an effort to promote jobs, President Barack Obama is urging Congress to extend transportation funding. The legislation scheduled to expire Sept. 30 also includes a 18.4 cent per-gallon federal tax, according to Bloomberg.
Members of Congress are sure to disagree over funding levels.
A Senate proposal calls for a $109 billion, two-year extension, according to Bloomberg. A proposal from John Mica, a Florida Republican on the House transportation committee, would reduce transportation funding by about a third.
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