Federal Reserve Continues “Stimulus” as Economy Limps
The Federal Reserve on Wednesday left in place its monthly $85 billion bond-buying stimulus plan, arguing the support was needed to lower unemployment even as it indicated a recent stall in U.S. economic growth was likely temporary.
The U.S. central bank predicted that the nation's job market would continue to improve at a modest pace, and repeated a pledge to keep purchasing securities until the outlook for employment "improves substantially."
"Growth in economic activity paused in recent months, in large part because of weather-related disruptions and other transitory factors," the Fed said after a two-day meeting.
A report on Wednesday showed the U.S. economy unexpectedly contracted in the fourth quarter as inventory investment slowed and government spending plunged. Analysts said superstorm Sandy, which slammed into a large swath of the U.S. East Coast in late October, also disrupted the recovery.
Source: Reuters. Read full article. (link)
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"Analysts said superstorm Sandy, which slammed into a large swath of the U.S. East Coast in late October, also disrupted the recovery."{
Funny. Just a couple of weeks ago AP was pimping broken windows as a stimulus to the econ in those areas.
Maybe they're just lying, ignorant assholes. -
To get out of this mess, we should pay the unemployed to bury Paul Krugman alive and then dig him back up over and over. Now that's wealth production.