Trajan
conscientia mille testes
well since QE 2 is supposed to die in June, I this might well be its epitaph.
Its affects however will live beyond the end of the prgm.
Stimulus by Fed Is Disappointing, Economists Say
By BINYAMIN APPELBAUM
Published: April 24, 2011
WASHINGTON The Federal Reserves experimental effort to spur a recovery by purchasing vast quantities of federal debt has pumped up the stock market, reduced the cost of American exports and allowed companies to borrow money at lower interest rates.
But most Americans are not feeling the difference, in part because those benefits have been surprisingly small. The latest estimates from economists, in fact, suggest that the pace of recovery from the global financial crisis has flagged since November, when the Fed started buying $600 billion in Treasury securities to push private dollars into investments that create jobs.
As the Feds policy-making board prepares to meet Tuesday and Wednesday after which the Fed chairman, Ben S. Bernanke, will hold a news conference for the first time to explain its decisions to the public a broad range of economists say that the disappointing results show the limits of the central banks ability to lift the nation from its economic malaise.
Its good for stopping the fall, but for actually turning things around and driving the recovery, I just dont think monetary policy has that power, said Mark Thoma, a professor of economics at the University of Oregon, referring specifically to the bond-buying program.
Mr. Bernanke and his supporters say that the purchases have improved economic conditions, all but erasing fears of deflation, a pattern of falling prices that can delay purchases and stall growth. Inflation, which is beneficial in moderation, has climbed closer to healthy levels since the Fed started buying bonds.
These actions had the expected effects on markets and are thereby providing significant support to job creation and the economy, Mr. Bernanke said in a February speech, an argument he has repeated frequently.
But growth remains slow, jobs remain scarce, and with the debt purchases scheduled to end in June, the Fed must now decide what comes next.
more at-
http://www.nytimes.com/2011/04/24/business/economy/24fed.html?_r=1&partner=rss&emc=rss
Its affects however will live beyond the end of the prgm.
Stimulus by Fed Is Disappointing, Economists Say
By BINYAMIN APPELBAUM
Published: April 24, 2011
WASHINGTON The Federal Reserves experimental effort to spur a recovery by purchasing vast quantities of federal debt has pumped up the stock market, reduced the cost of American exports and allowed companies to borrow money at lower interest rates.
But most Americans are not feeling the difference, in part because those benefits have been surprisingly small. The latest estimates from economists, in fact, suggest that the pace of recovery from the global financial crisis has flagged since November, when the Fed started buying $600 billion in Treasury securities to push private dollars into investments that create jobs.
As the Feds policy-making board prepares to meet Tuesday and Wednesday after which the Fed chairman, Ben S. Bernanke, will hold a news conference for the first time to explain its decisions to the public a broad range of economists say that the disappointing results show the limits of the central banks ability to lift the nation from its economic malaise.
Its good for stopping the fall, but for actually turning things around and driving the recovery, I just dont think monetary policy has that power, said Mark Thoma, a professor of economics at the University of Oregon, referring specifically to the bond-buying program.
Mr. Bernanke and his supporters say that the purchases have improved economic conditions, all but erasing fears of deflation, a pattern of falling prices that can delay purchases and stall growth. Inflation, which is beneficial in moderation, has climbed closer to healthy levels since the Fed started buying bonds.
These actions had the expected effects on markets and are thereby providing significant support to job creation and the economy, Mr. Bernanke said in a February speech, an argument he has repeated frequently.
But growth remains slow, jobs remain scarce, and with the debt purchases scheduled to end in June, the Fed must now decide what comes next.
more at-
http://www.nytimes.com/2011/04/24/business/economy/24fed.html?_r=1&partner=rss&emc=rss
