Fed eyes steps to bolster sputtering recovery (doing the job Obama and Congre$$ refuse to do.)

AP on Yahoo ^ | 7/14/10 | Jeannine Aversa - AP

[NormsRevenge]

WASHINGTON – Federal Reserve officials cut their forecasts for growth this year and signaled they stood ready to take new steps to keep the recovery alive if the economy worsens.

A new document, released Wednesday, revealed a more cautious mood among the Fed policymakers in light of Europe's debt crisis, a volatile Wall Street, a stalled housing market and high unemployment.

With risks growing, Fed officials at their June 22-23 meeting saw the need to explore new options for bolstering the economy. That's a turnaround from earlier this year when they were moving to wind down crisis-era supports.

No new specific steps were disclosed or agreed upon at that time.

[avacado]

"Fed eyes steps to bolster sputtering recovery"

Don't bother! WE THE PEOPLE HAVE OUR OWN SOLUTION!

[rbg81]

Let me guess: this involved keeping interest rates at effectively 0%. So, while banks won’t lend and people won’t borrow (as they are already underwater), then the people who actually SAVE won’t make any interest either. Its a trifecta!

[TruthConquers]

Oh, goody gooody gum drops.

Another rally in the wings?? A rally run on government money?? More Treasury buying by the Feds??? The dollar dropping and being devalued by another 98%????

Oh, goody. /s

[bigbob]

Enabling consumer credit and overconsumption is exactly what we don’t need more of. Businesses are sitting on their cash, afraid to invest or hire even if/when demand returns and justifies it out of fear of what Obama will do next.

But the elephant in the room is not the interest rate, it’s the debt. Since the fed has taken no steps to help inflate the debt away, and since we could grow double-digits for a decade and still not grow our way out of it, the only remaining option is default. If our Chinese benefactor decide to stop buying our t-bills, things are going to get really nasty, really quick.