Andrew Torgan
CNN Financial News Producer

Fed Chairman Ben Bernanke says President-elect Barack Obama's proposed fiscal stimulus package could help the economy, but he added that Wall Street may need additional government bailouts to bring about a sustained economic recovery. Speaking in London, Bernanke said that the nearly $800 billion plan being discussed by the incoming Obama administration and Congress "could provide a significant boost to economic activity." But he cautioned that the plan is "unlikely to promote a lasting recovery unless they are accompanied by strong measures to further stabilize and strengthen the financial system."

The nation's trade deficit narrowed sharply in November to the lowest level in 5 years, reflecting the sharp drop in the price of imported oil. The Commerce Dept. says imports exceeded exports by $40.4 billion, down substantially from a revised $56.7 billion trade gap in October. The last time that the trade deficit was so small was November 2003, when the gap was $40 billion.

Stocks opened flat this morning after Fed chairman Bernanke said Wall Street may need more bailouts. Also weighing on sentiment was a bigger-than-expected loss from Dow component Alcoa, which reported quarterly earnings after Monday’s closing bell.

Ohio's unemployment compensation fund has run dry, forcing the state to begin borrowing federal funds. The Ohio Department of Job and Family Services said Monday the federal government has already approved $500 million to be borrowed by the state to pay benefits in January and February. Ohio has requested that it be allowed to use $50 million of that amount to pay benefits this week. An agency spokesman said the state is committed to preventing the unemployed fund from missing any payments. Ohio and many other states have seen their unemployment funds decrease drastically as the number of unemployed workers has surged amid the recession.

Ford wants to roll out a fleet of hybrid and plug-in cars over the next several years, but it does not want to go down the road General Motors is taking with the Chevrolet Volt. The Volt, which is expected to go on sale late next year, will use purely electric power to drive the wheels, and a gasoline engine will only be used to generate electricity for longer range. But Ford engineers believe that using a gas engine that way won't deliver both the fuel economy and performance customers want.

Toyota unveiled its third-generation Prius hybrid, the world's top-selling "green" car, at the Detroit Auto Show. Toyota says the new Prius achieved a combined city/highway mileage of 50 miles per gallon, an improvement over the 46 mpg for the current model and 41 mpg for the first version. The car will hit showrooms in Japan and the United States in late spring.

Gas prices are holding steady at $1.790 a gallon. The current national average is $2.32 below the record high price of $4.114 that AAA reported on July 17, 2008. 3 states have regular unleaded gas prices of $2 and higher. 47 states and the District of Columbia have regular unleaded gas prices below $2. The highest gas prices are in Alaska ($2.501). The cheapest is in Wyoming ($1.459).

Does the country need an energy tax? Supporters of such a measure say a hefty tax on oil, gas and coal is the best way to control global warming and help end our dependence on foreign oil. The tax would be levied on energy companies, but they in turn would pass it on to consumers. Phased in over a 10-year period, that would add $1 to every gallon of gas and about $70 to the average household’s monthly electric bill. Could such a politically-unpopular tax ever be voted into law? Are there more palatable ways to move the country to cleaner, more efficient fuels? That’s today’s Energy Fix.