Fed to weigh pick-me-up for flagging recovery (clear signal it is prepared to print more money)

Reuters on Yahoo ^ | 8/6/10 | Mark Felsenthal

[NormsRevenge]

WASHINGTON (Reuters) – The Federal Reserve on Tuesday may send a clear signal it is prepared to print more money to support a faltering economic recovery if necessary.

The central bank is widely expected to renew its vow to keep rates near zero for "an extended period" and markets will watch closely for signs officials are growing more concerned the recovery is at risk or that there is danger of falling into a damaging vicious cycle of falling prices and slowing growth.

Evidence the already sluggish recovery has lost momentum has shifted discussion at the U.S. central bank from exit strategies to whether the economy needs more backing, which would most likely come in the form of buying more longer-term assets.

A disappointingly weak report on employment in July, when the private sector added a meager 71,000 new jobs, adds weight to arguments in favor of more stimulus.

Fed Chairman Ben Bernanke told Congress in July the central bank is "ready and will act" if the recovery did not continue to move forward.

[hinckley buzzard]

Inflation will help the "recovery?" Another Ivy League genius at work, no doubt.

[Bean Counter]

The question they have to be asking is how much lower will the numbers that were released today going to be when they are revised even further downward in early September?? June was an unmitigated disaster for employment and we only found that out today.

So what to you think Norm...more “Quantitative Easement” starting next week?? The EU and Asian Markets will not like that if it’s true...

[Marty62]

ah yes, now they are going to play the hyperinflation card.