Bank Chief: No New Measures To Help US

StevieJ

I thought this was supposed to happen after the markets closed? The markets seem to be reacting positively, no QE3 yet.

The head of the US Federal Reserve has offered no new measures to help the American economy in a key speech to bankers.
There had been speculation that Mr Bernanke might announce a third round of quantitative easing - pumping cash into the economy.

http://uk.finance.yahoo.com/news/Bank-Chief-No-New-Measures-To-skynews-2006630751.html?x=0

worldtraveller

.....Yet!

IMHO, it's inevitable, as I've posted several times before, especially with the elections next year and the ongoing unemployment problems that Obama will need to address somehow. However, it's highly unlikely that it will be called QE3 as such, but further intervention there will be, I believe, as we will surely see in the UK as well.

Loughton_Monkey

My take on the speech is simply "It's Obama's Fault. Don't blame the Bankers"

"Most of the economic policies that support robust economic growth in the long run are outside the province of the central bank," he said.....

"As I have emphasised on previous occasions, without significant policy changes, the finances of the federal government will inevitably spiral out of control, risking severe economic and financial damage."

"Federal Reserve officials would like nothing more than to be left alone: the basic problem is that if you drew up a list of what could be done out of Washington to try to help economic expansion, Federal Reserve action is pretty low on the list.

"The reason why we have this unhealthy focus on the Federal Reserve is that the politicians aren't delivering things that could be more effective," he told the BBC."

http://www.bbc.co.uk/news/business-14683954

I mean the boy's probably right. It's in Obama's gift to do the obvious and cut 'welfare' by 30%, and defense by 80%, and divert a bit of this to regeneration. But nevertheless, if I was President of the United States, I would have this vindictive, finger-pointing, 'not my fault guv'-in-public underling fired, prosecuted for treason, and banged up for eternity!

Cameron is not known for his backbone, but if ever Merv uttered a sentiment such as this - blaming the coalition - I think even he would have Merv out at the JobCentre before you could say "Quantitative Easing". I mean, what's the good of appointing an 'Independent' BOE Governer if all he's going to do is bad-mouth you in public?

1984ReturnsForReal_2

No one is going to buy it then

worldtraveller

The U.S. economy failed to add jobs for the first time in almost a year, while the unemployment rate was stuck at 9.1%, putting pressure on policymakers to revive a moribund labor market.

Nonfarm payrolls were unchanged last month -- the worst result since a small decline in September 2010 -- as the government sector continued to shed jobs, the Labor Department said Friday. The private sector added only 17,000 jobs.

WSJ

It's my understanding that the U.S. economy typically needs to add around 125,000 jobs per month just to keep up with population growth, and at least twice that many jobs are needed to bring down the unemployment rate.