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Why Won’t the Fed Do More to Fight Unemployment?
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Why Won’t the Fed Do More to Fight Unemployment?
Yesterday’s big Ben Bernanke press conference made one thing abundantly clear: the Fed is not about to embark on any aggressive program to bring down the level of joblessness.
Why not? With unemployment at nearly nine percent, there can be little doubt that we are currently experiencing a jobs crisis. Shouldn’t the Fed be doing more? I suspect the answer is that Bernanke doesn’t believe the Fed can do more. He likely understands that if the Fed were to continue to engage in aggressive monetary easing—stoking fears of inflation—joblessness would actually increase.
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