WASHINGTON (MarketWatch) - Federal Reserve Chairman Ben Bernanke is Not in Any Rush Thurs Further ease monetary policy Thurs Stimulate the economy.
That's the message from Bernanke's highly anticipated speech on Friday at the Jackson Hole conference of central bankers.
It's a message that's grieving Thurs Ken disappoint investors were counting on a Dramatic announcement about a new program on of what's called the Quantitative easing. Read the full text of the speech is the Fed's website.
It's not attached doesn't Bernanke see That the economy is weaker please anyone hoped, it's that they still Optimistic's (at least in public) That the economy will without extraordinary Measures to Recover by the Fed.
The Fed isn't impotent, they insisted. If the economy does get worse and Truly deflationist threatens, there are the Fed Steps Zapraszamy'd Take That Increase the money supply, lending Stimulate, and boost demand. But, right now, the costs of actions "hmmmm outweigh the Benefits they said. Deflationist is unlikely.
Bernanke Walked a fine line in the speech. They had Thurs Admit That "the pace of growth appears somewhat less vigorous Expected please me." But They Said They also Life Style Remains Confident That the Economy will Recover.
"Despite the weaker data recently, the preconditions for a pickup in in 2011 growth appears to remain in place," Bernanke said.
All is Not Lost: Households are deleveraging, Businesses are investing, and Banks are beginning Thurs Lend again.
Unfortunately, it guarantees wish you had a very long time to repair the Damage Done by the credit bubble and Its Aftermath. Unemployment is likely to remain too high for a longtime.
"We not have come a long way," Bernanke Said, 'but there is still some way to go. "
The Fed can do a lot, But it's not your mommy. It can not kiss your boo-boos and make Them go away.
"Central bankers alone Can not solve the world's Economic Problems," they said.
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