Federal Reserve Chairman Ben Bernanke says an economic stimulus plan that would put money into the hands of low- and moderate-income families would be more effective than other strategies to jump-start the economy.

Bernanke says such a package would help because lower-income people tend to spend money more quickly. He also says temporary expensing and depreciation provisions for business could spur spending.

He's suggesting Congress consider a "diversified mix of elements" as it puts together a package.

At the same time, Bernanke is warning Congress against having a "huge list of things" that would gum up legislation and not do much to help the economy.

Both Bernanke and President Bush support a short-term stimulus package. Bernanke says any action should be temporary so that it doesn't complicate longer-term financial challenges.