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Bernanke: Fed Could Act Again to Stimulate Economy
ABC News ^
| April 25, 2012
| MARTIN CRUTSINGER
Posted on 04/26/2012 3:25:28 AM PDT by Son House
After its bond-buying programs expired, the Fed in September began a $400 billion program dubbed Operation Twist. Under that program, the Fed is not expanding its portfolio but instead selling shorter-term securities it owns and buying longer-term bonds to keep their rates down. The program is scheduled to end in June.
On Friday, the government will issue its first estimate of economic growth for the January-March quarter. Many economists are predicting an annual growth rate of 2.5 percent better than they had expected when the year began. Ben Bernanke AP Federal Reserve Chairman Ben Bernanke... View Full Caption
But analysts are concerned that growth could weaken in the current quarter, reflecting payback from an unusually warm winter that boosted economic activity in the first quarter.
In its updated forecast Wednesday, the Fed predicted that the economy will grow between 2.4 percent and 2.9 percent in 2012 slightly faster than it predicted after its January policy meeting. However, the Fed is forecasting slower growth in 2013 and 2014. Bernanke attributed those forecasts in part to the expiration of tax cuts and to spending cuts enacted by Congress.
The Fed thinks unemployment, now at a three-year low of 8.2 percent, will be between 7.8 percent and 8 percent at year's end, also slightly better than its previous forecast.
The Fed has slightly raised its estimate for inflation by year's end: between 1.9 percent and 2 percent. Still, that higher forecast is still lower than the Fed's official 2 percent inflation target.
On interest rates, 11 Fed officials are forecasting that the first interest rate hike won't occur until 2014 or later. But no official is looking for the first rate hike to occur as late as 2016.
(Excerpt) Read more at abcnews.go.com ...
TOPICS: Business/Economy; Front Page News; News/Current Events; Politics/Elections
KEYWORDS: bernanke; economy; fed; operationtwist; stimulate
However, the Fed is forecasting slower growth in 2013 and 2014.
So the Democrats want to tell us their Economic Plan is working? How do they make that argument when the Federal Reserve's outlook is different?
1
posted on
04/26/2012 3:25:34 AM PDT
by
Son House
To: Son House
"So the Democrats want to tell us their Economic Plan is working? How do they make that argument when the Federal Reserve's outlook is different?" Facts and the Truth NEVER phase the RATS.
They just make it up and guess what? The LSM eats it up. . .
2
posted on
04/26/2012 3:29:58 AM PDT
by
DeaconRed
(Cold War Veteran. . . . US Army Security Agency 1964-1968)
To: Son House
Fed Could Act Again to Stimulate Economy
Sounds like a threat.
3
posted on
04/26/2012 3:31:01 AM PDT
by
SpaceBar
To: Son House
Corrected title:
“Fed Could Act Again To Buy Votes For Obama”
4
posted on
04/26/2012 3:33:00 AM PDT
by
Fresh Wind
('People have got to know whether or not their president is a crook.' Richard M. Nixon)
To: Son House
The fed is going to run out of fuel to toss on the fire. Bernanke will do everything possible to keep the market up for the Commies reelection...Then, SHTF!
Mike
5
posted on
04/26/2012 3:41:49 AM PDT
by
MichaelP
(The ultimate result of shielding men from the effects of folly is to fill the world with fools ~HS)
To: Son House
Either our central bank is run by idiots or evil crooks. You can’t sustain a consumer based national economy. Until we return to an economy based on production we will keep sinking into the swamp.
6
posted on
04/26/2012 4:02:28 AM PDT
by
freedomfiter2
(Brutal acts of commission and yawning acts of omission both strengthen the hand of the devil.)
To: Son House
Even a moron would admit that there is no such thing as a shovel ready job, and “stimulus” is a massive waste of money that just made the Obama Recession worse: “Shovel-ready was not as shovel-ready as we expected.”
- Barack Obama
Why would they waste our children’s and grandchildren’s money again?
7
posted on
04/26/2012 4:05:37 AM PDT
by
Pollster1
(Can we afford as much government as welfare-addicted voters demand?)
To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...
8
posted on
04/26/2012 4:23:32 AM PDT
by
SunkenCiv
(FReepathon 2Q time -- https://secure.freerepublic.com/donate/)
To: Son House
So the Democrats want to tell us their Economic Plan is working?
Depends on what is is. The Left’s economic plan is not your economic plan. Everyone knows it but it is politically incorrect to say what their “change” entails. But it is true that their economic plan is working as planned.
To: Son House
Fed Could Act Again to Stimulate Economy It worked so well the first time.
10
posted on
04/26/2012 6:01:31 AM PDT
by
The_Victor
(If all I want is a warm feeling, I should just wet my pants.)
To: Son House
Bailout Ben and Turbo Tax Timmy are nothing more than partisan hacks and bolt-on accessories to the Democrat Party.
Be afraid. Be very afraid.
To: The_Victor
Translate: The Obama Fed will bail out their big banker buddies and the citizens will get higher food, energy, etc costs via the first Black President’s Zimbabwee economics-lite.
12
posted on
04/26/2012 6:06:10 AM PDT
by
OldArmy52
(Scratch a Democrat, expose a Fascist.)
To: Son House
Hmmm...
the concept of negative interest rates comes to mind.
“We’ll pay YOU 1% if you take out this home loan”
13
posted on
04/26/2012 6:07:41 AM PDT
by
MrB
(The difference between a Humanist and a Satanist - the latter knows whom he's working for)
To: Son House
Fed Could Act Again to Stimulate EconomyLOL
That's a lot of poppycock for a brain dead, dumbed down populace and a MSM who won't report the difference between a temporary increase in government cash flow due to the income tax season, verses the need to print more money out of thin air when the cash flow recedes and exposes our deficit spending, AGAIN.
What a coincidence that the income tax season lies beyond the public memory but within a period of unsually flush coffers.
Rest assured, the Fed WILL "stimulate" again and likely sooner than most think.
14
posted on
04/26/2012 6:11:53 AM PDT
by
Errant
To: SaraJohnson
Good point, as we’ve passed all of Pelosi’s jobs bills for 4 year, the stated intend isn’t the result we see.
15
posted on
04/26/2012 9:46:44 AM PDT
by
Son House
(The Economic Boom Heard Around The World => TEA Party 2012)
To: Pollster1
Why would they waste our childrens and grandchildrens money again?
Speaker Boehner(R) increasing the debt limit.
16
posted on
04/26/2012 9:56:17 AM PDT
by
Son House
(The Economic Boom Heard Around The World => TEA Party 2012)
To: Son House
The Fed will stimulate the economy...or well, put more electronic money into it. It’s a choice between a collapse now or later, which collapse is going to happen. Do you need more time to prepare, or do you need a real economic recovery sooner? Which economic recovery won’t be soon either way.
Nearly everyone involved in politics (both parties) and having a sizable income is getting the income directly or indirectly from debt.
17
posted on
04/26/2012 12:27:54 PM PDT
by
familyop
(We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
To: Son House
The Fed has created a Liquidity Trap. They are out of bullets. Rates will rise in spite of their money printing. When the Chinese decide the Fed is screwing them, they will gradually reduce holdings. Without their favorite buyer in the market, rates will rise.
THEN, try to get a loan. You think it's bad now, just wait.
18
posted on
04/26/2012 12:35:49 PM PDT
by
demsux
(Obama: THE job destroyer)
To: freedomfiter2
"Either our central bank is run by idiots or evil crooks. You cant sustain a consumer based national economy. Until we return to an economy based on production we will keep sinking into the swamp."
The Federal Reserve is not the cause of our lack of domestic manufacturing and other production. It's only trying to make our move to the bottom as smooth and gradual as possible.
One major, real cause is that of local, yocal regulators and their NIMBY friends (pensioners, government and government-linked business employees), regulating against small development and manufacturing. I'm in the middle of nowhere in a majority Republican County with extremely few residents, and there's a zoning regulation ("law," they call it) against any manufacturing--even a one-horse operation. There's another one against doing any automotive work, more of them against all kinds of property rights.
We have the government we deserve. We're morally bankrupt.
19
posted on
04/26/2012 12:37:54 PM PDT
by
familyop
(We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
To: familyop
You’re right, zoning is just another name for communist style central planning. It’s one big reason that I left PA.
20
posted on
04/26/2012 1:40:03 PM PDT
by
freedomfiter2
(Brutal acts of commission and yawning acts of omission both strengthen the hand of the devil.)
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