Fed says growth pause temporary, keeps up stimulus

FED TO KEEP INTEREST RATES ARTIFICIALLY LOW

bigstory.ap.org

FED SAYS GROWTH PAUSE TEMPORARY, KEEPS UP STIMULUS.

WASHINGTON (AP) — The Federal Reserve said Wednesday that the U.S. economy "paused" in recent months because of temporary factors and reaffirmed its commitment to try to stimulate growth by keeping borrowing costs low for the foreseeable future.

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Brace yourselves, it appears more inflation and stagnation is just beyond the horizon.

Diane Swonk chief economist at Mesirow Financial, suspects the minutes of the meeting, which will be released in three weeks, will reveal some concerns members hold about the budget issues' impact on the economy.

"The Fed is very cognizant about how it characterizes the economy," Swonk said. "They are worried about a self-fulfilling prophecy of talking the economy down too much."

The statement was approved on an 11-1 vote. Esther George, the president of the Federal Reserve Bank of Kansas City, cast the lone dissenting vote. George, who is a new voting member, expressed concerns about the risk of higher inflation caused by the Fed's aggressive policies.

In December, the Fed signaled for the first time that it will tie its policies to specific economic barometers. Fed Chairman Ben Bernanke made clear during a news conference that even after unemployment falls below 6.5 percent, the Fed might decide that it needs to keep stimulating the economy. Other economic factors will also shape its policy decisions, he said.

The guidance was designed to give consumers, companies and investors a clearer sense of when super-low borrowing costs might start to rise.

The Fed also said it would continue its bond purchases until the job market improved "substantially."

When it buys bonds, the Fed increases its investment portfolio and pumps more money into the financial system — something critics (myslf included) say could eventually ignite inflation or create dangerous bubbles in assets like real estate or stocks.

bigstory.ap.org
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reply to post by 1nquisitive



Of course got to keep the illusion alive right up until it all collapses... Then it will be time for some justice..

They should be doing price control, of lland, houses, rent, food and utilities, and transportation as Norway does and should be how things are always done. They have the highest standard of living in the world.

Oh, and banks should be national, not international, government, the people having shares, for its theirs, not corporation and your damned right interest should be massively controlled and extremely low.

Free medicare, free dental care and free schooling including university.

So put that in your pipe and smoke it because anything else is a hellzone. We're way past the primitive stage and all the problems is the way this artifical chess game called slavery is set up. Its not natural problems. Earth produced abundance.

And you can grow 1 million pounds of produce and 10 000 fish on 3 acres, or less.

reply to post by 1nquisitive


Banks don't have any actual money now a days. They in effect are "Zombie Banks".

Without the Fed pumping more fake money into the system, the end game will come into play sooner than TPTB want it to happen.

it's sad that the great minds that are in power have the common
since of a 3 year old.

Anyone with half a brain can see the end result of what is going on and
where it is going to end up.
Where in their logic is any of this a good idea.

Of course they're going to keep the rates low. If they raise it, the house of cards falls. It's not possible for them to raise the rates anytime soon. Every major action is stalemated in place.

Originally posted by Unity_99
They should be doing price control, of lland, houses, rent, food and utilities, and transportation as Norway does and should be how things are always done. They have the highest standard of living in the world.

Oh, and banks should be national, not international, government, the people having shares, for its theirs, not corporation and your damned right interest should be massively controlled and extremely low.

Free medicare, free dental care and free schooling including university.

So put that in your pipe and smoke it because anything else is a hellzone. We're way past the primitive stage and all the problems is the way this artifical chess game called slavery is set up. Its not natural problems. Earth produced abundance.

And you can grow 1 million pounds of produce and 10 000 fish on 3 acres, or less.

edit on 30-1-2013 by Unity_99 because: (no reason given)

What nonsense, as if to say price controls are good.

Free market ftw.

Originally posted by severdsoul
it's sad that the great minds that are in power have the common
since of a 3 year old.

Anyone with half a brain can see the end result of what is going on and
where it is going to end up.
Where in their logic is any of this a good idea.

Would you rather they raise it

Mind enlightening some of us here and telling us where this all goes? I seem to be operating on less than half a brain. As far as I can tell, the future isn't written in stone, and all that is collapsing is the old system. Nothing is said of how we handle this transition, or what comes next. That's up to the will of the people.

reply to post by severdsoul


For reasons no one seems to be able to explain, they're committed to the Keynesian theory of economics--the principles of which have been rather thoroughly discredited. There are only so many responses within those constraints--none of which are of any value right now. And yet here we are. Either no one is allowed (by what mechanism I do not know) or no one is willing (for reasons I do not understand) to do anything useful.

Might as well settle in; it shows all signs of getting much worse....

your headline is not thesame as the article you have linked to - the article makes no metnion of any "artificial" interest rate levels at all.

How would higher interest rates be of benefit?

Originally posted by unityemissions

Originally posted by severdsoul
it's sad that the great minds that are in power have the common
since of a 3 year old.

Anyone with half a brain can see the end result of what is going on and
where it is going to end up.
Where in their logic is any of this a good idea.

Would you rather they raise it

Mind enlightening some of us here and telling us where this all goes? I seem to be operating on less than half a brain. As far as I can tell, the future isn't written in stone, and all that is collapsing is the old system. Nothing is said of how we handle this transition, or what comes next. That's up to the will of the people.

The rate itself is irrelevant, and should be an incidental reflection of a market rate, ie. if more people saved the rate would decrease, and vice versa.

The pertinent condition here is the artificial nature of the current interest rates, aka the price of borrowing money, which is interfering and polluting the market price finding mechanism.

Originally posted by Aloysius the Gaul
your headline is not thesame as the article you have linked to - the article makes no metnion of any "artificial" interest rate levels at all.

How would higher interest rates be of benefit?

Refer to my post above.

A higher rate would encoursge more savings deposits.

reply to post by 1nquisitive


It would collapse the economy in short order.

Originally posted by unityemissions
reply to post by 1nquisitive

 

It would collapse the economy in short order.

Yes, a readjustment, economic equilibration to true prices.

reply to post by 1nquisitive


Except for the fact that high frequency trading accounts for what, 70% of all trades on the stock market these days? I don't think a price discovery mechanism is possible until we ban that technology in the markets.

Originally posted by unityemissions
reply to post by 1nquisitive

 

Except for the fact that high frequency trading accounts for what, 70% of all trades on the stock market these days? I don't think a price discovery mechanism is possible until we ban that technology in the markets.

The stock market doesn't drive consumer prices.

And even so if I want to employ an algorithm to trade on my behalf as opposed to a man, why not?

Why 'ban' it?

Originally posted by 1nquisitive
The stock market doesn't drive consumer prices.

Are you trying to tell me if the markets tanked tomorrow that consumer prices would remain the same?

I think you need a reality check.

Originally posted by 1nquisitive

And even so if I want to employ an algorithm to trade on my behalf as opposed to a man, why not?

Why 'ban' it?

edit on 30-1-2013 by 1nquisitive because: typo

Facepalm, bro.

Ask Karl Denninger why.

Originally posted by unityemissions

Originally posted by 1nquisitive
The stock market doesn't drive consumer prices.

Are you trying to tell me if the markets tanked tomorrow that consumer prices would remain the same?

I think you need a reality check.

Originally posted by 1nquisitive

And even so if I want to employ an algorithm to trade on my behalf as opposed to a man, why not?

Why 'ban' it?

edit on 30-1-2013 by 1nquisitive because: typo

Facepalm, bro.

Ask Karl Denninger why.

edit on 30-1-2013 by unityemissions because: (no reason given)

I've got a better idea, you go ask supply & demand why you're wrong.

reply to post by 1nquisitive


I would, but the futures market killed her long ago.

Such a tragedy