"Our Children and Grandchildren are not merely statistics towards which we can be indifferent" JFK

Wednesday, February 24, 2010

Ben Bernanke: Recap of more Federal Reserve Spewing 2/24/2010

The U.S. economic recovery is still not yet on a sustainable path, and near-zero interest rates are still needed, Federal Reserve Board Chairman Ben Bernanke told lawmakers Wednesday.
Grandpa: The overall economy will tank if we were not there to place countless of billions of dollars of debt on our grandchildren’s backs let alone the inflation time bomb... 

Bernanke noted that economic growth expanded at a 4% pace over the past two quarters of 2009, but was pushed higher by temporary factors. Whether the recovery can last depends on whether businesses and consumers open their wallets, he said.
Grandpa: Wait a minute Ben, Sheila Bair (FDIC) just kicked off "America Saves Week"?

"As the impetus provided by the inventory cycle is temporary, and as the fiscal support for economic growth likely will diminish later this year, a sustained recovery will depend on continued growth in private-sector final demand for goods and services," Bernanke remarked. He described the recovery as "nascent."
Grandpa: See "America Saves Week".

We don't see inflation as an imminent threat," Bernanke said. Conditions "are likely to warrant exceptionally low levels of the federal funds rate for an extended period." "Most indicators suggest that inflation likely will be subdued for some time."
Grandpa: As long as Ben is able to coerce other government agencies into manipulating the Consumer Price Index, he can continue the “inflation is not an imminent threat” spew. Let's not forget the manipulated CPI figures also reduce or eliminate cost of living increases to an entire parental generation!

Bernanke added that the economy appears to be headed in the right direction. "Private final demand does seem to be growing at a moderate pace." He noted that consumer spending has recently picked up and said there were "tentative signs of stabilization in the labor market." More than 40% of the unemployed have been out of work for six months or more, he observed.

"Notwithstanding these positive signs, the job market remains quite weak," according to Bernanke.
Grandpa: WHAT, tentative signs of stabilization and remains quite weak?

Tentative signs of stabilization in the labor market 



"Although the federal funds rate is likely to remain exceptionally low for an extended period, as the expansion matures, the Federal Reserve will at some point need to tighten monetary conditions to prevent the development of inflationary pressures.
Grandpa: As the expansion matures?
 
"We are confident that we have the tools we need to firm the stance of monetary policy at the appropriate time," Bernanke said.
 
 

Commercial real estate remained the "biggest credit issue" facing the country, according to Bernanke.





 SLEEP WELL BEN....





 
 
 
 
 
 
 
 
 
 
 
 
 
 




No comments:

Post a Comment