Skip to comments.Bernanke: With unemployment high, Fed can do more
Posted on 08/31/2012 11:13:34 AM PDT by KansasGirl
JACKSON HOLE, Wyo. Chairman Ben Bernanke made clear Friday that the Federal Reserve will do more to boost the economy because of high U.S. unemployment and an economic recovery that remains far from satisfactory.
He also argued that the Feds moves so far to keep interest rates at record lows and encourage borrowing and spending have helped bolster the economy.
Bernanke stopped short of committing the Fed to any specific move, such as another round of bond purchases to lower long-term rates. But in a speech at an annual Fed conference in Jackson Hole, Wyo., Bernanke said that even with rates at super-lows, the Fed can do more.
The most dramatic step the Fed could take would be another round of bond buying. This is known as quantitative easing, or QE. In two rounds of QE, the Fed bought more than $2 trillion of Treasury bonds and mortgage-backed securities. Many investors have been hoping for a third round QE3 to be unveiled as soon as the Feds next policy meeting in September.
In light of Bernankes comments Friday, some analysts said that might be a stronger possibility now.
Bernanke has taken a further step along the path to more policy stimulus, most likely a third round of asset purchases (QE3) to be announced at the mid-September FOMC meeting, said Paul Dales, senior U.S. economist at Capital Economics.
(Excerpt) Read more at p.washingtontimes.com ...
“Do more” what? SABOTAGE? It’s worked out well so far! Collapsing a free-market, capitalist Republic without making it appear too obvious ain’t easy, ya know!!
Its not his job to stimulate the economy. His job is to keep the value of the dollar stable. If he'll do that, his job is done.
Building the economy is what we do if guys like O and Bernanke will just stop monkeying with the dials and switches.
The best thing the Fed can do is dissolve.
Beware the “Lame Duck” beltway free for all!
Ben needs to step back from the printing press.
paid $4.03 for a loaf of plain white bread yesterday.
Bernanke is going to REPEAT a FAILED
policy of Keynesian "economics".
Insanity is repeating a failed policy and
expecting a different outcome.
Good ol’ Helicopter Ben, ready to print more worthless dollars to bail out Obama. We always knew he was a political hack.
Some day, when all those worthless trillions come home to roost with soaring inflation that will cruse the country, people will curse his name.
The Obamadork’s prime talent appears to be his ability to make sure that absolutely nobody working for him possesses any measurable ability to do useful work.
Berna-twinkie is a prime example.
Pretty fancy bread. I pay under $1.50 for King Soopers Wheat and I live in the sticks.
The feds job as originally envisioned was to bail out Big Banks and Big Business. I forgot how they sold ig to the public but probably it had something to do with dollar stability. Why is that the goal again? Firstly they’re crapat it since by the time their adjustment takes effect conditions have changed and since they can’t tell the future they’re apt to be wrong.
Aside from that there’s nothing inherently good about price stability. If personal computers were ss expensive yesterday as they were in 1975 would we be better off? The price of money is no different than anything else. It is prone to the laws of supply and demand. If production expands why not let it deflate? If we’re in a recession like now why not let it rise? That way it might work the way it’s supposed to and convey information to us rather than us trying and failing to use it to trick everyone into thinking the economy’s all sunshine and lollipops.
Whoops check that. $1.99, but there are cheaper wheat breads available down to 99 cents.
He only talks now since the markets will move on that, which is his goal.
He can’t do anything until the fiscal cliff has passed. He can’t know what to do until the coming midnight compromise on the cliff items is announced around Jan 1 or shortly after.
That helps with trading between now and then, so I’m good with it.
WE AINT GOT IT,,DONT SPEND IT
It’s not that he’s a political hack. He almost certainly is but any fed chairman would do the same. That’s what it’s there for and that’s what the dominant economic theory tells them to do.
Here in Seattle the cost of food items on sale stays about the same, but...
The number of sales goes down, down, down.
Had to pay full price on orange juice and cookies several times this summer because NOTHING was on sale.
And, manufacturers continue to cut quantity size but retain the original price.
“Mother’s Cookies,” which went bankrupt two years back, just cut my favorite from 14 oz. to 12 oz.
Wow, does that get me steamed!
Uh oh.... Here come the $1,000 checks!!! Wonder if he’ll try to get them out the door in good time before the election...
A drowning man can ask for a glass of water too!
It will be a treat to see this grifter out on his butt the day Romney is inaugurated.
My thoughts exactly.
“Mothers Cookies, which went bankrupt two years back, just cut my favorite from 14 oz. to 12 oz.
Wow, does that get me steamed!”
That does it! When inflation deprives us of our cookies, things have gone too far. We serfs have our limits.
The Fed can do more.......
The strongest possible statement from the Fed that would do the most good is to promote a return to the gold standard and hard money
PARIS (AP) World stock markets rallied Friday after Federal Reserve Chairman Ben Bernanke promised that the central bank could do more to stimulate the U.S. economy.
The euro shot up past $1.26 at one point for the first time in over a month; by late afternoon, it was at $1.2565.
The boost came after Bernanke spoke at an economic forum in Jackson Hole, Wyoming. Expectations for new stimulus had been low after an economic survey earlier in the week sounded a fairly positive note.
But Bernanke said Friday that because U.S. unemployment is so high, the Fed would do more to boost the economy, calling the recovery "far from satisfactory."
He added that the central bank "should not rule out" new policies to improve the job market.
After a cautious open, Wall Street shot up.
Stop printing paper money.
Stop squeezing the throat of the small businessman.
WRONG!!! But thanks for playing.
"The Congress established three key objectives for monetary policymaximum employment, stable prices, and moderate long-term interest ratesin the Federal Reserve Act." 12 U.S.C. § 225a
"The Board of Governors of the Federal Reserve System and the Federal Open Market Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economys long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates. "
Bernanke is doing exactly what he is supposed to be doing. And he is doing what is best for the country.
It's Congress and the Executive that needs to get it's act in gear and fulfill their responsibilities.
Ben will step back from the printing press when unemployment is down, which won’t likely happen until the executive and congress addresses the unwise trade policies that have decimated our industries.
The Fed doesn’t spend. That’s Congress.
How much higher does he figure they can get it?
President Bush appointed Bernanke. All that Ben can do is to try to keep the fall of the dollar stable. If the dollar continues to be pegged too high, the few remaining manufacturers who have products made in the USA (as differentiated from Americans who own manufacturing done elsewhere, also included in US manufacturing statistics) will move production overseas or simply shut down. A high dollar makes exports uninviting to potential foreign customers. Can’t have those government incomes (incl. pensions) riding high with nothing but debt to feed them.
Does anyone know where I can secure info as to the value of a dollar over time?
...called the weak job market a grave concern that causes enormous suffering, wastes talent and can inflict lasting damage on the economy.