Posted on 10/05/2010 11:48:06 AM PDT by NormsRevenge
NEW YORK (Reuters) – The U.S. Federal Reserve should do "much more" monetary easing to spur a sluggish economic recovery, a top Fed official said in an interview published on Tuesday.
"In the last several months I've stared at our unemployment forecast and come to the conclusion that it's just not coming down nearly as quickly as it should," Chicago Federal Reserve Bank President Charles Evans told the Wall Street Journal.
"This is a far grimmer forecast than we ought to have," he said, for which reason he favors "much more accommodation than we've put in place."
The U.S. unemployment rate in August ticked up to 9.6 percent, and government figures to be released on Friday are expected to show a further increase to 9.7 percent.
Evans, who rotates into a voting position on the Fed's policy-setting committee next year, stands on the dovish end of the spectrum at the Fed, concerned more with high unemployment than .. threat of inflation.
That puts him in the company of the most influential members of the committee, including New York Fed President William Dudley, Board Vice-Chairman Janet Yellen and Chairman Ben Bernanke.
Dudley's comments last week that he favored more accommodation unless the economy improves substantially were widely taken by market participants as a virtual promise of action at the Fed's next policy-making meeting, on November 2 and 3.
Many analysts expect the Fed to boost bond purchases at that time, despite recent public comments from some officials critical of the idea, including Dallas Fed President Richard Fisher and Philadelphia Fed President Charles Plosser.
Evans said he favors more asset purchases but worries that that alone would not be enough, ..
He said the Fed should consider ways to push inflation higher in order to bring down the real cost of credit.
(Excerpt) Read more at news.yahoo.com ...
the nation is in a maelstrom and he's worried about installing solar panels at the WH.
US President Barack Obama at the White House in Washington, DC, October 4, 2010. Four weeks from congressional elections that threaten to roadblock his presidency, Obama is intensifying his campaign blitz, as Democrats dare to dream they may limit a Republican wave. (AFP/Jim Watson)
Federal Reserve Board Chairman Ben Bernanke, seen here on October 1, on Monday called for quick and decisive steps to rein in the exploding US budget deficit, warning failure to act could result in a serious crisis. (AFP/File/Yuri Gripas)
Que Dandy Don..
Turn out the lights..
The parrrrty’s overrrr..
They say that all
good things must end.
burning down the printing presses
meanwhile Stiglitz says
Fed, ECB throwing world into chaos: Stiglitz
http://news.yahoo.com/s/nm/20101005/bs_nm/us_stiglitz_economy
NEW YORK (Reuters) – Ultra-loose monetary policies by the U.S. Federal Reserve and the European Central Bank are throwing the world into “chaos” rather than helping the global economic recovery, Nobel Prize winning economist Joseph Stiglitz said on Tuesday.
...
“The irony is that the Fed is creating all this liquidity with the hope that it will revive the American economy,” Stiglitz said. “It’s doing nothing for the American economy, but it’s causing chaos over the rest of the world. It’s a very strange policy that they are pursuing.”
Gold Cracks $1,340 An Ounce
http://www.foxbusiness.com/markets/2010/10/05/gold-cracks-ounce/
“Gold Cracks $1,340 An Ounce”
Today seems to be a hyper-inflationary type day on the markets. Dow up nearly 200. All commodities up (silver up 3.8%) and oil over $80 a barrel. US dollar index down over .75%. The Euro up nearly 2 cents on the US dollar. Bond yields up. Bond prices down.
The devaluation of the US$ is under way. They are going to inflate the debt away along with your life savings.
Stiglitz is right. Even with a big victory on November 2, with Obamacare and crazy Obama nationalization and hyperregulation and overtaxation slowing down, the Fed is going to assure that the uncertainty of deflation and spectre of gross inflation continue to hang over our economy. That’ll only extend the fear, uncertainty and doubt that is keeping us from getting back on track.
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