Aug 12, 2009 3:02pm
The Fed Speaks: Good News, Bad News
EmailJust in – from the ABC Business Unit:
The Fed confirmed what the GDP and jobs data have been showing — that “economic activity is leveling out.” It took note of continuing headwinds, including “ongoing job losses, sluggish income growth, lower housing wealth, and tight credit.” But it said it believes “policy actions…will contribute to a gradual resumption of sustainable economic growth” without inflation.
Some economists thought the Fed might tip its hand in terms of signaling when it might start weaning the market from its massive support of the mortgage and credit markets. It said only it will continue to do what’s necessary as long as necessary.
In all, the Fed is taking a cautious go-slow approach here…
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As soon as the economy picks up some steam expect inflation in food and energy. The monetary base has been expanded so much and the two things people will still need to buy is food and energy. It will be interesting to see how the Fed and congress deal with the Social Security crisis coming in the next few years. Man we are in some deep dooooo.
Posted by: Huh | August 12, 2009, 3:33 pm 3:33 pm