Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

9/2/2012 (1 year ago)

Catholic Online (www.catholic.org)

Federal Reserve Chairman defends central bank's policies at Fed conference

Federal Reserve Chairman Ben Bernanke, in his address at the Fed Conference in Jackson Hole, Wyoming left little question that he's going to do more to lift the national economy in the following policy meeting next month. Bernanke, however, didn't mince words when he spoke of the hard road that lies ahead for the U.S. economy.

Economic recovery is going at far too slow a pace for Federal Reserve Chairman Ben Bernanke, who called it 'far from satisfactory,' citing concerns about the jobs market's weak growth.

Economic recovery is going at far too slow a pace for Federal Reserve Chairman Ben Bernanke, who called it "far from satisfactory," citing concerns about the jobs market's weak growth.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

9/2/2012 (1 year ago)

Published in Business & Economics

Keywords: Ben Bernanke, Federal reserve, unemployment, inflation, Jackson Hole, Wyoming


LOS ANGELES, CA (Catholic Online) - Expressing concern over the labor market, he described high unemployment as a "grave concern not only because of the enormous suffering and waste of human talent it entails, but also because persistently high levels of unemployment will wreak structural damage on our economy that could last for years." Bernanke added that "it is important to achieve further progress, particularly in the labor market."

Economic recovery is going at far too slow a pace for Bernanke, who called it "far from satisfactory," citing concerns about the jobs market's weak growth.

While there has been better economic data of late, Bernanke was adamant that he is still deeply dissatisfied with the outlook.

The slow job market, he said is the result of cyclical problems in the economy, such as a lack of demand -- and not structural ones, such as a mismatch between the skills people have and the skills employers are looking for.

He says the Fed thinks it can help on cyclical problems, but not structural ones. Bernanke feels that the current situation is something that the Fed can assist.

Bernanke offered a "no panacea" caveat. While he would love fiscal policy makers to take actions to support the economy and address long-run deficits, he doesn't seem to see that as justification for inaction on his front.

The Fed is currently working under a dual mandate imposed by Congress to achieve price stability and maximum sustainable employment. Bernanke played down inflation risks, saying inflation has remained near two percent, "despite repeated warnings that excessive policy accommodation would ignite inflation."

The current situation, where inflation remains stable while unemployment stays unsatisfactorily high, Bernanke in effect laid out his legal argument for pressing harder on the monetary gas pedal.

In response, the Dow Jones Industrial Average initially tumbled 70 points. The dollar also shot up against its rivals, in a sign that investors saw lower odds of more quantitative easing.

"First, there was nothing in there that said they were going to start QE immediately," Keith Bliss, senior vice president at Cuttone & Co. says.

"And then he said that monetary policy cannot fix fiscal policy. We all knew that, but for him to say that we're going to have an overhang in this country no matter what I do, that he's not a panacea -- people thought, 'Maybe it is bad.'"

.

---


Pope Francis: end world hunger through 'Prayer and Action'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for July 2014
Sports:
That sports may always be occasions of human fraternity and growth.
Lay Missionaries: That the Holy Spirit may support the work of the laity who proclaim the Gospel in the poorest countries.



Comments


More Business & Economics

INDEBTEDNESS: One in three U.S. adults have 'debt in collections' Watch

Image of One in three American adults are so far behind in personal debt that many of their accounts have been referred to collections.

By Catholic Online (NEWS CONSORTIUM)

Some call it the American way, and it's become a most uncomfortable fact of life for many Americans. Personal debt is at an all-time high, and at least one in three Americans, 77 million people, have had their debt referred to collection agencies as a result. ... continue reading


LUMP OF COAL - LITERALLY! Coal companies pushed to brink of insolvency by Obama policies Watch

Image of The very fuel that fed the Industrial Revolution and powered U.S. growth for much of the past century, the coal industry finds itself on the brink of insolvency, with many companies going out of business.

By Catholic Online (NEWS CONSORTIUM)

Dealing with cheap natural gas and tighter regulation, the U.S. coal industry has fallen on hard times. The very fuel that fed the Industrial Revolution and powered U.S. growth for much of the past century, the coal industry finds itself on the brink of ... continue reading


The poor getting power in U.S. - typical household is now worth a third less Watch

Image of The old saw goes that when only a few people are winning and more than half the population is losing, surely something is amiss.

By Catholic Online (NEWS CONSORTIUM)

The rich get richer - and the poor have children. But seriously, folks, the poor is getting even poorer in the United States. Recovery from the last big recession in 2007, hasn't really taken off as of yet. Recent studies show that the average American ... continue reading


HAIL BRITANIA! Britain declared fastest growing economy in developed world Watch

Image of Britain is now

By CNA/EWTN News

There will always be an England, as the old song goes. While the United Kingdom has experienced highs and lows, it's always recovered - and prospered. This was born out by the recent news that Britain will be the best performing major economy in the developed ... continue reading


Amazon sits on slippery slope as investors pull out from company Watch

Image of Amazon, despite constant reinvestment into technology like smartphones and drones, continues to lose investors and profits.

By Catholic Online (NEWS CONSORTIUM)

Amazon lost over $16 billion in value on the night of July 26, a sign that investors were growing weary of the retail giant's repeated failures to make a consistent profit. LOS ANGELES, CA (Catholic Online) - This was Amazon's largest quarterly loss in two years, ... continue reading


The buck does stop here: Chinese currency set to close the gap between it and the dollar Watch

Image of A new study from China indicates that the Chinese yuan is likely to become the third most used international currency by 2019.

By Catholic Online (NEWS CONSORTIUM)

China's currency, the renminbi (RMB), is looking to become the third-largest international currency behind the U.S.'s dollar and the euro by 2019 said the Renmin University of China in a report published on July 20. LOS ANGELES, CA (Catholic Online) - Last year, ... continue reading


Financial consultant warns that U.S. is entering third largest stock bubble Watch

Image of A new study by financial consulting firm Smithers & Co. warns that the U.S. is entering another major stock bubble, the third largest in U.S. history.

By Catholic Online (NEWS CONSORTIUM)

A new research report by financial consultant Andrew Smithers, chairman of Smithers & Co., suggests that the U.S. is in the midst of another stock-market bubble, much like the bubbles in 1853, 1906, 1929, 1969 and 1999. LOS ANGELES, CA (Catholic Online) - ... continue reading


WARNING: The most important article you may ever read - We need a moral revolution at the top, before pitchforks appear in the street Watch

Image of In the game of plutocracy you start by owing money to the bank and as it progresses, you owe more.

By Marshall Connolly, Catholic Online (NEWS CONSORTIUM)

An article published in 2011 in Forbes is making the rounds again and people are talking, but despite the dust on the copy, it's a timely conversation. The article by Brendan Coffey reveals that there are four companies that control 147 other companies and those 147 ... continue reading


U.S. to shortly overtake Saudi Arabia, Russia in production of natural oil Watch

Image of In Texas and North Dakota, oil extraction is soaring at shale formations as companies split rocks using high-pressure liquid in a process known as fracking.

By Catholic Online (NEWS CONSORTIUM)

The United States has often found itself at the mercy of unstable nations for the majority of its oil imports. That day may soon be past after American begins the extraction of energy from shale rock, eventually overtaking both Saudi Arabia and Russia in oil ... continue reading


Unemployment among black Americans twice that among whites Watch

Image of The jobless rate among whites last month was 6.6 percent; among blacks, 12.6 percent. The unemployment rate for blacks has averaged about 2.2 times that for whites.

By Catholic Online (NEWS CONSORTIUM)

When African-Americans marched on Washington in 1963, it was under the banner of "Jobs and Freedom." There remains a great inequity with the former; the number of unemployed blacks in America remains twice as much as whites, and has remained that way for ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Gospel, John 11:19-27
19 and many Jews had come to Martha and Mary to ... Read More

Saint of the Day

Saint of the Day for July 29th, 2014 Image

St. Martha
July 29: "Jesus loved Martha and Mary and Lazarus." This unique ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter