Fed Chairman Pushes Hard for New Steps to Spur Growth

[thecrow]

Source: NY Times

JACKSON HOLE, Wyo. — The Federal Reserve chairman, Ben S. Bernanke, delivered on Friday a detailed and forceful argument for new steps to stimulate the economy, reinforcing earlier indications that the Fed is on the verge of action.

Mr. Bernanke said that the Fed’s policies over the last several years have provided significant benefits, but that a clear need remained for the Fed to do more and that, in his judgment, the likely benefits of such actions outweighed the potential costs.

“It is important to achieve further progress, particularly in the labor market,” Mr. Bernanke said in his prepared remarks. “Taking due account of the uncertainties and limits of its policy tools, the Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.”

Mr. Bernanke did not announce any new steps in his speech, delivered before an annual monetary policy conference organized by the Federal Reserve Bank of Kansas City. Nor did he offer a timetable, although many analysts expect the Fed to act at the next meeting of its policy-making committee on Sept. 12 and 13.



Read more: http://www.nytimes.com/2012/09/01/business/economy/fed-chairman-pushes-hard-for-new-steps-to-spur-growth.html?_r=1&emc=na

[MannyGoldstein]

1. Hopefully not just more free cash for bankers

Because this time they'll really, really, really lend it to small businesses and consumers, honest.

[drm604]

2. The article seems to be saying that they're considering it.

It also could seek to provide low-cost funding for certain kinds of lending, like mortgage loans, emulating a program recently begun by the Bank of England.

[thecrow]

3. Yeah I hope it goes to us little guys.

[Major Hogwash]

5. I don't think he will.

Bernanke said in July that he didn't think there was any need for another stimulus.
Housing prices went up during the June to August period, and the rate of first-time filers for unemployment benefits was flat last week.

[The Last Democrat]

4. That’s good new.

How if banks would just pay the depositors for using their money.

[CountAllVotes]

6. What Ben should do but is too stupid to do

He needs to start raising rates now!

If he does this, people sitting on the sidelines waiting to buy a house, etc. when the economy "bottoms out" will buy that house they've been planning to buy anyway and that new car that they need. They will see that rates are rising and they will begin to spend the money they've been hanging on to.

I have a doctor living next door to me renting the house. He's been there for 2 years now waiting for the bottom. Dear Mr. Doctor next door -- Message for you: Buy now because it isn't going to be getting any cheaper anytime soon IMO.

Will he and others like him listen?

Probably not as they are still waiting on Wall Street to save their asses.

[Buenaventura]

7. I hate to be picky ...

actually, I love it ... but the name of the town is "Jackson", not "Jackson Hole".

[thecrow]

9. Actually, I hate to be contradictory

but those paragraphs were taken *directly* from the article as per DU rules.
Meaning... I didn't write the words.

[Igel]

10. But he was in Jackson Hole, not Jackson proper.

At a lodge in the national forest. If the reporter filed from the lodge it's a question of taste.

The reporter could claim the closest town name or that of a suitable landmark. The landmark, "Jackson Hole" the valley, is more widely known I suspect than "Jackson" the town. Certainly more hoity-toity.

[apnu]

8. The Fed is on the verge of action.

Sorta like my father letting everyone in the house know he was on the verge of taking a dump.

"I'm going in the bathroom in five minutes with the paper!" he'd bellow.