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Fed officials more confident recession ending - What recovery will look like is another question
MarketWatch ^ | Sep 2, 2009, 2:24 p.m. EST | Greg Robb, MarketWatch

Posted on 09/02/2009 12:04:35 PM PDT by Ernest_at_the_Beach

WASHINGTON (MarketWatch) -- Federal Reserve officials were more confident than ever that the steep downturn in the economy was coming to an end, but had no firm grasp about the strength of the likely recovery, according to the minutes of their last policy meeting released Wednesday.

There was some suspicion that the recovery would be pretty fragile and vulnerable to shocks.

A key unknown is whether consumer spending would be restrained and if households will maintain the new-found religion to save more of their income.

The current thinking, according to the summary, is that the recovery would be shaky at first - likely be led by businesses rebuilding inventories. Only in 2010 would a firmer recovery take hold.

"Fed officials expected the pace of recovery to pick up in 2010, but they expressed a range of views, and considerable uncertainty, about the likely strength of the upturn," the summary said.

As a result, Fed officials decided to stand pat and make no changes to their zero-interest-rate policy and extraordinary quantitative easing plans.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; Extended News; Government; News/Current Events
KEYWORDS: economy; recession

1 posted on 09/02/2009 12:04:36 PM PDT by Ernest_at_the_Beach
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To: Ernest_at_the_Beach

Live it up. The party ends when all the new taxes and regulations bite.


2 posted on 09/02/2009 12:07:00 PM PDT by DManA
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To: Ernest_at_the_Beach

Pshaw!


3 posted on 09/02/2009 12:09:45 PM PDT by Paperdoll (Tagline applied for)
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To: Ernest_at_the_Beach
The good news is, the economy is no longer falling.

The bad news is, it is no longer falling because it's splattered all over the sidewalk.

4 posted on 09/02/2009 12:13:58 PM PDT by dirtboy
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To: Ernest_at_the_Beach

“Federal Reserve officials were more confident than ever that the steep downturn in the economy was coming to an end,”

Yea !

Now we can watch the slow steady downturn take hold.


5 posted on 09/02/2009 12:17:57 PM PDT by crescen7 (game on)
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To: Paperdoll

You notice, in the full report, they talk about the instability in the labor market and continued unemployment. How do 70% of the jobs get created, by small businesses. If consumer spending, about 2/3 of our economy is constrained by un/under employment; rising prices due to cap and trade;automatically higher taxes after 2010; increaed deficits thaat need to be financed due to ower tax receipts and criminally negligent prediciting by the political class, and either higher interest rates/inflation or both because of FED actionshow does one,beyond the current replacement of inventories predict sustained growth?


6 posted on 09/02/2009 12:19:13 PM PDT by easttennesseejohn
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To: easttennesseejohn

I doubt very much that the government is interested in creating new jobs in the private sector. They are so busy deswtroying our economy, thus our Republic. In other words, thing are going esactly the way they want it to.
FIRE EVERYLAST ONE OF THEM IN 2010!


7 posted on 09/02/2009 12:35:12 PM PDT by Paperdoll (Tagline applied for)
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To: Ernest_at_the_Beach

Wonder which Country it are talking about? It sure is not the America Obama is doing his best to destroy.


8 posted on 09/02/2009 12:52:16 PM PDT by mulligan
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To: Ernest_at_the_Beach

Bush set tax cuts to expire. Oh..that will help! /sarc


9 posted on 09/02/2009 1:11:21 PM PDT by voveo
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To: Ernest_at_the_Beach

10 posted on 09/18/2009 8:19:04 AM PDT by Dubya-M-DeesWent2SyriaStupid! (Obama, the first ever 3 in a half year, lame duck TOTUS)
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