Stimulus by Fed Is Disappointing, Economists Say

[Keith Bee]

Source: New York Times

WASHINGTON — The Federal Reserve’s 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 Fed’s 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 bank’s ability to lift the nation from its economic malaise.

“It’s good for stopping the fall, but for actually turning things around and driving the recovery, I just don’t 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.

Read more: http://www.nytimes.com/2011/04/24/business/economy/24fed.html?_r=2&ref=business

---

Said it before, saying it again: Screw the Fed. Obama should've relied on Paul Krugman from the get-go.

[Orrex]

1. Only tax cuts for the rich can save us now

Come on, Obama! How about throwing a bone to the Right once in a while?

[Trajan]

8. Oh hell yeah !

Where do I sign off on converting my wage to TAX CUTS FOR THE RICH ?

Poor/rich bastards need some help ! ....

Who else is going to pay to open up sweatshops in foreign lands so they can make a killing on cheap sportwear or McDonald's toy manufacturing ???

[dkf]

2. The shovel ready projects were disappointing also.

They simply took too long to develop. I wonder what the best package would have been.

[Psephos]

4. They were 5% of the stimulus bill, and 95% of the P.R.

Which tells you all you need to know.

[dkf]

7. Obama recognized that there really aren't shovel ready projects.

The permitting and bidding systems don't enable them.

Obama: "No Such Thing as Shovel-Ready Projects"

With unemployment hovering near 10 percent nearly two years after President Obama signed his economic stimulus package, Mr. Obama is acknowledging that, despite his campaign promises, "there's no such thing as shovel-ready projects."

The president gave that remark in an hour-long interview with the New York Times.

http://www.cbsnews.com/8301-503544_162-20019468-503544.html

[kenny blankenship]

3. Seriously, someone is unrecommending this??

Ben, is that you?

[libmom74]

5. Duh! How long ago did Krugman call this?

Tax the rich and corporations, close the tax havens and loopholes, fix our trade agreements, invest in clean technology and end the wars. I know, I know it won't happen we need to starve the poor and elderly and let the sick die off, oh and give even more tax cuts to the rich. YAY compromise.

[jwirr]

6. If all you want to do is make the rich richer then the rethug way is the

way to go but if you want to make a difference on main street which means in the households then you had better listen to Paul Krugman and Robert Reich. Spend baby spend. Targeted spending would be the best.

[defendandprotect]

9. Fed should NOT be making our economic decisions ... CONGRESS should. .. !!

These are political decisions which have to be decided by our elected officials --

not a private bank!!

Elites are profiting, as usual, from this "Great Recession" -- i.e., depression!!

[BadGimp]

10. I agree Keith

[on point]

11. Supply side economics is a fraud and just creates asset price inflation

[xchrom]

12. Who will be the first in the admin to express surprise? Nt

[datan]

13. so sad...

no one here understands the difference between the fiscal stimulus taken by Obama and the monetary stimulus (QE) taken by the Fed...

[No Elephants]

14. Obviously, Obama wants Republican economic policies. He appointed

a Republican as Secretary of Treasury and re-appointed Bush's Fed head.

The guy who ran on change.

[defendandprotect]

16. +1000% --- "No Change = Change" .... "War = Peace" -- Newspeak -- !!

[defendandprotect]

15. American have to understand decision-making is being REMOVED from elected officials --

and into back rooms -- back channels --

onto "panels" and "commissions" -- and other avenues to suppress

the voice of the voters via their elected officials --

And for those elected officials already pre-owned and pre-bribed by

corporations, it's a CYA method of denying responsibility!