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alp227

(32,027 posts) Thu Jun 7, 2012, 03:15 PM Jun 2012

Ben Bernanke offers no sign of stimulus but says Fed will step in if needed

Source: The Guardian

Federal Reserve chairman Ben Bernanke on Thursday stopped short of signalling any new action to help the fragile US economy, saying the recovery was continuing but warning of potential pitfalls ahead.

"Economic growth appears poised to continue at a moderate pace of over coming quarters," Bernanke told the congressional joint economic committee. He said the Fed "remains prepared to take action as needed to protect the US financial system and economy."

Bernanke was speaking after disappointing news in the jobs market. Last week the labor bureau reported that the US added just 69,000 jobs in May as the unemployment rate rose to 8.2%, the first rise in nine months.

The news and continuing fears that Europe's economic woes are dragging on the US economy have led to speculation that the Fed will step in with a third round of financial stimulus known as quantitative easing, especially after officials hinted more action was being considered.

Read more: http://www.guardian.co.uk/business/2012/jun/07/ben-bernanke-stimulus-fed-economy

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Ben Bernanke offers no sign of stimulus but says Fed will step in if needed (Original Post) alp227 Jun 2012 OP

Hmmm I think it is way over due to bring out the Full Employment act.... midnight Jun 2012 #1

midnight

(26,624 posts)

1. Hmmm I think it is way over due to bring out the Full Employment act....

Reply to alp227 (Original post)

Thu Jun 7, 2012, 04:22 PM

Jun 2012

"We at the Federal Reserve have been focusing intently on supporting job creation."
Well, if we are to judge the Federal Reserve by how well it has accomplished its "dual mandate", then the Federal Reserve has been an abysmal failure.

Since the Federal Reserve was created, the U.S. dollar has lost well over 95 percent of its value to inflation.

Is that something Bernanke should be proud of?

Of course not.

Okay, so the Fed has failed when it comes to keeping inflation under control.

What about jobs?

Well, the first decade of this century was the worst decade for job creation that the United States has seen since the Great Depression.

The sad truth is that a total of zero jobs were created last decade. The following is a quote from a recent article in Washington Monthly....http://www.zerohedge.com/contributed/bernanke-says-any-criticism-federal-reserve-based-“misconceptions”

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