The Federal Reserve hoped that its three-year-old economic rescue campaign would reach a climax at the end of June. It hoped that consumers and businesses by now would be spending more and more, and the central bank could start doing less and less.
That peak now looks like a long plateau. The Fed still is expected to announce Wednesday that it will halt the expansion of its aid programs at the end of June, as scheduled, when it completes the purchase of $600 billion in Treasury securities. But growth is sputtering, and economists now expect that the Fed will leave its $2 trillion of bandages, props and crutches untouched until next year.
The pace of economic expansion has repeatedly fallen short of the Fed’s predictions, and the central bank is expected to lower its eyes once again when its releases a new forecast after a two-day meeting of its policy board, the Federal Open Market Committee.
[A] number of studies have concluded that the Fed’s efforts have had only a modest impact on the economy. Stock prices have climbed. Corporations have rarely been able to borrow money more cheaply. Mortgage loans have seldom been available at such low interest rates. But companies are hiring few new workers, and people are buying few new homes. Almost 25 million Americans cannot find full-time work, a number that is rising again after declining modestly over the last year.
Thanks to the geniuses at the Federal Reserve, the US dollar has the utility value of toilet paper, and our economy is just as bad, maybe even worse, than it was when it first started creating dollars out of thin air. QE1 and QE2 are failures and the Fed wants to double down on some more.
It’s amazing. A month ago, our national pundits were all excited about how POTUS “got” Osama bin Laden and how he would now be unbeatable in 2012.
That buzz lasted slightly over a week.
About four weeks later, the only buzz from Democrats included Weinergate and the indictment of presidential/vice-presidential nominee for the people’s party, John Edwards.
is continuing to create tons of shovel-ready jobs and we’re on the verge of a real Recovery Summer continues with its stranglehold on the economy.
With full control of the White House and both chambers of Congress for nearly four years has the housing market in a double dip, a record number of people on federal assistance, about 14 million people looking for work and anemic economic growth. Behold, the Obama’s McEconomy!
Hey, remember when Obama was elected and how the Democrats were constantly telling us how they would be pulling us back from the precipice of a repeat of the Great Depression?