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Fed chairman signals more stimulus coming
McClatchy News Service ^ | August. 31, 2012 | Kevin G. Hall

Posted on 08/31/2012 8:28:26 PM PDT by Free ThinkerNY

WASHINGTON -- A strong signal Friday from Chairman Ben Bernanke that more economic stimulus is on the way puts the Federal Reserve squarely in the middle of the fight for the White House in November’s presidential election.

Speaking at the Fed’s annual retreat in the Wyoming resort city of Jackson Hole, Bernanke offered a spirited defense of his unconventional efforts over the past three years to stimulate economic activity through the purchase of government and mortgage bonds. And he seemed to signal that more steps would be taken soon.

“As we assess the benefits and costs of alternative policy approaches, though, we must not lose sight of the daunting economic challenges that confront our nation,” Bernanke said. “The stagnation of the labor market in particular is a grave concern not only because of the enormous suffering and waste of human talent it entails, but also because persistently high levels of unemployment will wreak structural damage on our economy that could last for many years.”

Financial markets took those words as a sign of new action, probably as early as the Fed’s next meeting of the rate-setting Federal Open Market Committee on Sept. 12-13.

“The odds of the Fed doing something in September are greater today than they were yesterday,” said Mark Vitner, senior economist for Wells Fargo Securities in Charlotte, N.C. “It seems clear to me that they’re not focusing on the unemployment rate but the persistently high unemployment that is likely to do long-term damage to the economy.”

(Excerpt) Read more at miamiherald.com ...


TOPICS: News/Current Events
KEYWORDS: bernanke; dollardevaluation; fed; fedstimulus; stimulus

1 posted on 08/31/2012 8:28:29 PM PDT by Free ThinkerNY
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To: Free ThinkerNY

Great. Take money out of the economy then tax it as it’s put back in.


2 posted on 08/31/2012 8:30:43 PM PDT by SkyDancer ("OF COURSE I TALK TO MYSELF - Sometimes I need an expert opinion")
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To: Free ThinkerNY

Gee, worked so well in the past.


3 posted on 08/31/2012 8:30:48 PM PDT by doc1019 (Given my choices, I will not be voting this time around.)
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To: Free ThinkerNY

Incompetent clowns.


4 posted on 08/31/2012 8:31:43 PM PDT by FlingWingFlyer (Had enough of the freaks running the show yet?)
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To: Free ThinkerNY
crank-em up boys...

5 posted on 08/31/2012 8:33:28 PM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: Free ThinkerNY

Because being stupid twice isn’t enough.


6 posted on 08/31/2012 8:35:52 PM PDT by lurk
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To: SkyDancer

and about 50-75% of the money stays in bureaucracy

wow

How stupid can people be?


7 posted on 08/31/2012 8:36:47 PM PDT by GeronL (The Right to Life came before the Right to Pursue Happiness)
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To: Free ThinkerNY

Hey Ben, a bit of a panic to help the boss?

We have someone running against him who will see through this.


8 posted on 08/31/2012 8:37:49 PM PDT by GrouchoTex (...and ye shall know the Truth and the Truth shall set you free....)
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To: GrouchoTex

Yep...Fed “Stimulus” = Obama campaign funds.


9 posted on 08/31/2012 8:39:40 PM PDT by Jane Long (Soli Deo Gloria!)
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To: All

I just saw 2012 the movie. Scariest thing I’ve ever seen. obama is truly a threat to this country. And the spending is all part of his plan.

To everyone who don’t plan on voting for Romney, I urge you to go see this movie.


10 posted on 08/31/2012 8:41:28 PM PDT by Terry Mross
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To: Free ThinkerNY

Well, look for some commodity to take a bizarre leap, propped up by ever more implausible rationalizations, followed by an equally impressive crash a few months later, at which point rumblings about another round of stimulus will begin. Like clockwork.

It’s going to be food this time, imho. Conditions already favor it. Oil, nah, Europe’s in bad shape, China’s headed there, we’re barely treading water and there’s such an amazing amount of new supply coming online domestically.

Gold or silver? Still looks pricey, but all bets are off in the event of some unexpected negative financial event setting off a panic. Entirely possible, just not particularly predictable.


11 posted on 08/31/2012 8:45:24 PM PDT by RegulatorCountry
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To: Terry Mross

2016.


12 posted on 08/31/2012 8:49:34 PM PDT by TigerClaws
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To: All

I just saw 2012 the movie. Scariest thing I’ve ever seen. obama is truly a threat to this country. And the spending is all part of his plan.

To everyone who don’t plan on voting for Romney, I urge you to go see this movie.


13 posted on 08/31/2012 8:53:05 PM PDT by Terry Mross
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To: Terry Mross

Bingo. Obama is on a mission to destroy us!


14 posted on 08/31/2012 8:54:50 PM PDT by GlockThe Vote (The Obama Adminstration: 2nd wave of attacks on America after 9/11)
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To: Free ThinkerNY

Maybe he’ll announce it at the DNC Convention. They need some good news!!


15 posted on 08/31/2012 8:55:56 PM PDT by timlilje
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To: Free ThinkerNY

Insanity: doing the same thing over and over again and expecting different results. - Albert Einstein


16 posted on 08/31/2012 8:56:25 PM PDT by Proud2BeRight
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To: Free ThinkerNY
Just the opposite of what was on Yahoo Finance 3-4 hours ago!...Amazing isn't it!
17 posted on 08/31/2012 8:56:36 PM PDT by M-cubed
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To: GeronL
and about 50-75% of the money stays in bureaucracy

With the rest going to unions and cronies.

18 posted on 08/31/2012 9:04:06 PM PDT by umgud (No Rats, No Rino's)
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To: Free ThinkerNY

Now that both parties are openly distancing themselves from balanced budget happening anytime in the near future (2040 for the Repubs and 20400? for the Dems, and now that we are gonna get more money printing (QE3).....I am all for a split decision in November. I don’t want Government to work. Nope.

Give me a dem Prez and a Repub Congress. I don’t want Government to work because they are working against US. Both parties just want to take control so they can control that money making printing machine in D.C. Thats all. I vote for GRIDLOCK.

No Balanced Budget and More Trillion dollar deficits and Higher Multi Trillion Dollar Debt Ceilings. That is what we are getting, regardless. Not to mention more Illegal Immigration, Worsening trade deficits, the Moslem Brohood taking over the whole damn Islamic World, blacks beating the crap out of whites and nobody standing up for the unborn child.

Sure, now Romney mightCould keep his latest promises. Question is how long until he changes them again.

wEll, you know it would be fun seeing odumbi’s skinny butt getting evicted from the WH. Ok I’ll vote for Mitt.


19 posted on 08/31/2012 9:06:16 PM PDT by TomasUSMC ( FIGHT LIKE WW2, FINISH LIKE WW2. FIGHT LIKE NAM, FINISH LIKE NAM)
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To: Free ThinkerNY

We The People are counting the days until we vote the Regime OUT.


20 posted on 08/31/2012 9:10:07 PM PDT by ExTexasRedhead
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To: Free ThinkerNY

Why does the Fed attending a conference in Jackson Hole tell me that these bastards STILL don’t have their sense of values in order. These conferences need to be held in Cleveland,Detroit, Buffalo etc... not in Jackson Friggin Hole.


21 posted on 08/31/2012 9:26:20 PM PDT by Cyman
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To: Free ThinkerNY

Talk about not learning from the past.


22 posted on 08/31/2012 9:34:18 PM PDT by Republican1795.
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To: Jane Long

FDR won his elections by patronage at election time. I’m in the ag business. With corn and beans at record highs, I do not see farmers voting Republican. Vilsak is making the rounds with his checkbook to support high prices for pork producers. This is gonna get ugly.


23 posted on 08/31/2012 9:41:57 PM PDT by griswold3 (Big Government does not tolerate rivals.)
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To: Cyman
These conferences need to be held in Cleveland,Detroit, Buffalo etc... not in Jackson Friggin Hole.

There was another article saying these honorable men are under great stress in the service of our country and need a suitable location to unwind and go fly-fishing.

24 posted on 08/31/2012 9:44:18 PM PDT by steve86 (Acerbic by nature not nurture TM)
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To: griswold3
He claims he saved 2 Million Jobs? He is delusional as Obama
25 posted on 08/31/2012 9:45:53 PM PDT by scooby321 (AMS)
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To: TigerClaws

Thanks for the correction. I guess I put 2012 because this is our last chance to stop this man. It proves beyond a doubt he wants this nation brought to third world status.


26 posted on 08/31/2012 9:50:28 PM PDT by Terry Mross
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To: RegulatorCountry

Just returned from the grocery store. Inflation is here now. Campbell’s Cream of Chicken soup was $1.79 a can. Store brand 4/$5.00. Oh and I had to fill up my car today. Gas was $4.26 a gallon for regular.


27 posted on 08/31/2012 10:11:12 PM PDT by Semperfiwife (Politicians are like diapers. They need to be changed often and for the same reasons.)
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To: Free ThinkerNY

Bernanke is just jawboning now. He can’t do anything fiscally until he sees the final compromise which is coming (or not) on the fiscal cliff around Jan 1. He can’t take an action in the meantime which could be submarined by a subsequent congressional action. He also doesn’t want to take an action which lowers congressional options.

Obama is on his own. Bernanke is stealing the European trick of saying he will do whatever has to be done, and the markets move on that. But not for long.

Bernanke is doing nothing but talk until January unless the market crashes hard.


28 posted on 08/31/2012 11:18:07 PM PDT by SaxxonWoods (....The days are long, but the years are short.....)
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To: Free ThinkerNY

This makes zero sense to me. Why ?


29 posted on 08/31/2012 11:23:08 PM PDT by onona (Thank you fellow Freepers)
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To: Chode

Heh. My brother might have made that.


30 posted on 08/31/2012 11:41:22 PM PDT by Winstons Julia (Hello OWS? We don't need a revolution like China's; China needs a revolution like OURS.)
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To: Semperfiwife
Campbell’s Cream of Chicken soup was $1.79 a can.

$1.44 at Walmart in Newport News, VA.

31 posted on 08/31/2012 11:46:27 PM PDT by luvbach1 (Stop the destruction in 2012 or continue the decline)
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To: Free ThinkerNY
Is this the Oct surprise? They know the Repub congress will not go along with it
and are "as usual" going to create their own battle with the MSM on the front line.

They sure are desperate. Maybe they'll do something that will land them in prison.

32 posted on 09/01/2012 12:30:45 AM PDT by MaxMax
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To: Free ThinkerNY
Fed chairman signals more stimulus coming

Talk about pissing into the wind.. God help us.

33 posted on 09/01/2012 12:36:25 AM PDT by VideoDoctor
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To: Free ThinkerNY

This is the familial equivalent of the husband coming home and saying,

“Honey, I know we got credit card bills out the a$$, and we don’t have no savings, and we’re living from government check to government check. But, I think we can do something to help - I’m gonna take this new credit card application and send it in and transfer balances and take a cash-back on it, too.”


34 posted on 09/01/2012 2:48:04 AM PDT by Gaffer
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To: Free ThinkerNY

Just trying to keep the Market from tanking before the election - the real money knows how to manipulate things to suck the “stimulus” out and put it into their own acounts.


35 posted on 09/01/2012 4:41:21 AM PDT by trebb ("If a man will not work, he should not eat" From 2 Thes 3)
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To: Chode
Hey buddy, can you spare a guy a $100 for a cup of coffee?
36 posted on 09/01/2012 5:05:13 AM PDT by IMR 4350
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To: IMR 4350

You will be able to buy that $100.00 cup of cofffee with a real silver dime.


37 posted on 09/01/2012 5:44:55 AM PDT by Gadsden1st
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To: Winstons Julia
the picture the plates or the press?
38 posted on 09/01/2012 5:52:43 AM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: IMR 4350

pretty much...


39 posted on 09/01/2012 5:53:39 AM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: Free ThinkerNY

-——Wells Fargo Securities in Charlotte, N.C;;;;;

Code for the failed banking catastrophe known as Wachovia


40 posted on 09/01/2012 5:59:53 AM PDT by bert ((K.E. N.P. N.C. +12 ..... Present failure and impending death yield irrational action))
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To: onona

It’s actually pretty simple. Bernanke’s doctoral thesis was on The Great Depression and what the Fed did from a monetary policy standpoint. About now in the Depression The Fed tightened the money supply which sent the US into a further deflationary tailspin and set off a deeper recession leg down. Bernanke’s research showed that it was this tightening that caused the “double dip” as taking money out of the system is what you don’t do when demand is so high. Currently monetary velocity remains extraordinarily low which indicates demand is still exceptionally high. Bernanke’s thinks we are in the same boat as we were in the Depression and he has vowed to not repeat the same mistake. He will be as accommodative to the money supply as possible. Prior to now he has indicated a size limit of this accommodation (QE1 and 2 were ~700B). The new policy is that it will be “open ended”.


41 posted on 09/01/2012 6:02:22 AM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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To: Republican1795.

Actually Bernanke thinks he is doing exactly that. Learning from the past. His doctoral thesis was on the Fed monetary mistakes during the Great Depression.


42 posted on 09/01/2012 6:03:58 AM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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To: Wyatt's Torch
The new policy is that it will be “open ended”.

Probably only if Obama starts to lead in the polls.

If Romney looks like a sure thing the Fed may decide not to ease.

As an aside, I'm not sure how Bernanke feels about Romney saying he wants to audit the Fed or how this affects his QE decision.

43 posted on 09/01/2012 3:13:43 PM PDT by what's up
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To: Free ThinkerNY
More to break the camel's back..........


44 posted on 09/01/2012 3:25:54 PM PDT by potlatch (~~And the truth IS what counts, RIGHT ? ~~)
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To: what's up

I firmly believe Bernanke is an apolitical animal. He will keep the QE open because he thinks it’s the right thing to do.


45 posted on 09/01/2012 7:46:55 PM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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To: Wyatt's Torch

It’s not so much that he’s political. But if he sees Romney ahead and economic signs picking up as a result it will impact his decision IMO.


46 posted on 09/01/2012 8:39:45 PM PDT by what's up
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