Bernanke: Fed ready for "substantive" action

Reuters ^ | Thursday January 10, 12:38 pm | reuters

[AdamSelene235]

WASHINGTON (Reuters) - Federal Reserve Chairman Ben Bernanke said on Thursday that the U.S. economic outlook had worsened and said the U.S. central bank stood ready to act aggressively if needed to support growth.

"In light of recent changes in the outlook for and the risks to growth, additional policy easing may be necessary," Bernanke said in remarks prepared for delivery to a housing and finance group.

"We stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks," he said.

The Fed chief said the economy's prospects were weakening.

"Incoming information has suggested that the baseline outlook for real activity in 2008 has worsened and the downside risks to growth have become more pronounced," Bernanke said.

U.S. stock markets surged after Bernanke's comments, while the dollar remained weaker against a basket of currencies as investors concluded that the Fed would aggressively lower interest rates at its policy-setting meeting at the end of this month.

[AdamSelene235]

Hoo Boy. We're getting ready to get ready.

Fixin to get ready to do something substantive!

What a fool this man is.

I fail to see how destroying the dollar improves the economy.

[K-oneTexas]

Means they were not ready to do something substantiative before!

[Always Right]

And how glad I am that Ben is in charge and not a bunch of gold bugs who would lead us into a depression.

[FreedomProtector]

signaling .5% cut to both rates.

[Halgr]

All I can do is shake my head....

and this word comes to mind

“Stagflation”

[okkev68]

Yeah, because “helicopter ben” is definately not heading us towards a depression.

He is going to skip right past a depression and collapse the whole deck of cards.

[Petronski]

By substantive he means kicking the bears in the throat. Again.

[AdamSelene235]

Stand by for Supercalifriagilisticexpialidocious action.

[Obadiah]

That’s the way I read it as well. However, I am concerned that this could really ignite inflation.

[Paco]

So what is the result? Will a .5% cut in rates fend off a recession? What do you all see this year economically?

[AdamSelene235]

By substantive he means kicking the bears in the throat. Again.

So Petronski, Bears are long hard assets and short the housing & financial sectors and short the dollar and have been for long long time. Which is to say, at least in dollar terms, they are making a killing.

[Petronski]

That’s why they do so much bitching about Bernanke. Riight.

[FreedomProtector]

So what is the result? Will a .5% cut in rates fend off a recession? What do you all see this year economically?

I don't care, I'm not responsible for that and it isn't worth worrying about. I am responsible for working hard, investing all I can, giving all I can, and providing for my family. In the long run, investing will pay off. The business cycle is normal. The Main Stream Media's 'housing crisis' is actually good in the long run...lower prices for houses will result in higher standards of living.

[the_devils_advocate_666]

maybe rates will finally go low enough for me to consider refinancing the house

[AdamSelene235]

That’s why they do so much bitching about Bernanke. Riight.

I'm complaining about this bozo because he's destroying my country. In fact, at this point Bernanke is acting exactly like a caricature in the imagination of the most deranged tin foiled gold bug.

How the hell you are supposed to have a free and efficient market with somebody destroying the very medium of exchange is beyond me.

The market is first and foremost a distributed self organizing communication system and Bernanke is nothing but static on the line.

[AdamSelene235]

lower prices for houses will result in higher standards of living.

The idea Bernanke is pushing is to destroy the dollar to prevent housing prices from dropping to bail out the banks that made irresponsible loans in the first place.

[Petronski]

How the hell you are supposed to have a free and efficient market with somebody destroying the very medium of exchange is beyond me.

[AdamSelene235]

maybe rates will finally go low enough for me to consider refinancing the house

Like this?

[Theo]

Hm. I read the headline as “Fred ready for ‘substantive’ action.” Figured it was about his big endorsement.