Unemployment is stuck above 9 percent, and recent jobs reports have been increasingly ominous. With the legislative branch mired in what can charitably be called cataclysmic paralysis, the Federal Reserve stands as one of the few Washington institutions that can help goose the economy and stimulate employment.
“We’re not proposing anything today,” Bernanke said. “The main message I want to leave is that this is a serious situation. It involves a significant loss of human and economic potential.” Stocks fell on the news.
How should Bernanke’s comments be interpreted—will the Fed try to help the address the jobs crisis? It’s somewhat odd that he sent mixed signals, given that the Fed chairman’s words and actions are parsed so closely that investors can find themselves examining the size of his briefcase on a particular day.
The results of QE2 were mixed. Although it minimized the risk of deflation and it bolstered the financial markets, it did not strengthen the economic recovery.
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Join date : 2011-02-24
Age : 57
Location : New Jersey
I will be very upset if after all is said and done, 2012 comes, a Republican/Teapartier gets in, and they implement all of Obama's intended changes, up the unemployment rate to that which it actually is (I read somewhere 18%), and then blame Obama for everything.
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Join date : 2011-05-17
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