WASHINGTON — Troubled sub-prime mortgages and falling new home-construction numbers are likely to bog down the U.S. economy over the next six months, but it could rebound by spring, Federal Reserve Chairman Ben Bernanke said Thursday.

Testifying before the Joint Economic Committee of Congress, the Fed chief also acknowledged that he's caught between contradictory pulls: If he cuts interest rates more to spark the economy, that could worsen the threat of rising inflation from a weakening dollar and sky-high energy prices. The Fed's dual mission is to thwart rising prices, or inflation, while keeping the economy growing.

"We assess the risks to these objectives roughly balanced at this time," the Fed chairman said, signaling that the Fed doesn't expect to reduce interest rates again when it next meets, on Dec. 11. » read more

WASHINGTON — For the first time since 2001, it’s not clear that Congress will pass an annual temporary “patch” in time to prevent the creeping Alternative Minimum Tax from forcing up tax payments for millions of unsuspecting middle-class taxpayers.

In addition, if Congress doesn’t “patch” the AMT tax within 10 days — and it appears highly unlikely to do so — then the partisan bickering among lawmakers could delay tax refunds next year for tens of millions of Americans.

Democrats in control of Congress pledge to do as Republicans have done in recent years and prevent the AMT from hitting an additional 19 million American taxpayers. About 4 million tax filers paid the AMT on 2006 income. » read more