Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

9/2/2012 (2 years 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 (2 years 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 January 2015
General Intention:
That those from diverse religious traditions and all people of good will may work together for peace.
Missionary Intention: That in this year dedicated to consecrated life, religious men and women may rediscover the joy of following Christ and strive to serve the poor with zeal.



Comments


More Business & Economics

Is your bank account suffering? Here are 5 INCREDIBLY EASY TIPS on how to save money! Watch

Image of

By Abigail James (NEWS CONSORTIUM)

Saving money is not a simple task. It is hard to resist eating out or buying the hottest new music. How can your savings account grow when spending money is so easy in today's world? LOS ANGELES, CA (Catholic Online) - Whether you're planning on moving or looking to ... continue reading


Game over: Saudi Arabia threatens to increase oil production to dangerously drive America out of the oil market Watch

Image of America's rising oil production has threatened Opec's control of the global oil market, but Saudi Arabia may be striking back, upping its own production in order to drive costs beyond the ability of American oil corporations to compete.

By Matt Waterson (NEWS CONSORTIUM)

Despite the continuing decline of the price of oil, Saudi Arabia has actually increased its oil production in an attempt to gain a victory in the oil war against shale drillers in the United States. LOS ANGELES, CA (Catholic Online) - The Middle Eastern oil ... continue reading


Talk about a killer app! Apple posts largest profit in history of mankind Watch

Image of The iPhone 6, which has helped Apple post the record largest profit ever made by a corporation.

By Matt Waterson (NEWS CONSORTIUM)

Apple has sold 74.5 million iPhones in just the last three months, helping the tech giant's profits soar to $18 billion, up more than 37 percent. LOS ANGELES, CA (Catholic Online) - This is the largest profit ever made by a corporation, edging out the $16.2 billion ... continue reading


ECONOMIC EARTHQUAKE: IBM rumored to lay off 110,000 employees - biggest cull in business history Watch

Image of First reported on the Forbes Web site, IBM scoffed at the news. Representatives said that the reported scale of the job cuts

By Catholic Online (NEWS CONSORTIUM)

There are alarming indications that the largest corporate layoff in history may be near. There are rumors afoot that computer IBM plans to lay off 110,000 employees shortly. As their entire worldwide workforce is estimated at 430,000, this represents a quarter ... continue reading


Living on less than $2 dollars a day: Only 5 percent of global wealth belongs to the poorest 80 percent of the world Watch

Image of Millions of people around the world are living off of less than two dollars a day.

By Abigail James (NEWS CONSORTIUM)

The staggering increasing inequality among the wealthy and poor around the world continues to be a pressing issue. Eighty rich billionaires have as much money as 3.5 billion of the poorest people. LOS ANGELES, CA (Catholic Online) - The wealthy are occuring their ... continue reading


An amazing 2,500 of the world's most prestigious people canvas Davos, Switzerland for this year's World Economic Forum Watch

Image of

By Abigail James (NEWS CONSORTIUM)

Around 1,700 private jets will cover the sky, as the most elite people of the world descend on the annual World Economic Forum in Davos, Switzerland. Throughout the next week, world leaders, wealthy businessmen and even influential pop stars will come together to speak ... continue reading


Do they have your best interests at heart? A shocking 50 PERCENT of the global wealth precariously belongs to only ONE PERCENT of the world's population Watch

Image of Nearly 50 percent of the world's entire riches belong to only one percent of its people.

By Abigail James (NEWS CONSORTIUM)

Davos men, the world's most elite billionaires and politicians, gather at the World Economic Forum to once again attempt to tackle inequality between the rich and poor as the disparity continues to grow. LOS ANGELES, CA (Catholic Online) - Every year the world's ... continue reading


Downturn of low gas prices: Schlumberger to cut 9,000 jobs due to decline at pump prices Watch

Image of The precipitous fall of $1.8 billion came in a series of one-time charges related to the steep fall in commodity prices.

By Catholic Online (NEWS CONSORTIUM)

There is a downside to the plunging prices at the gas pump: Americans will be losing jobs as companies struggle to make up the difference in falling revenue. Case in point: Schlumberger is cutting 9,000 jobs due to low oil prices. Other petroleum companies are ... continue reading


Improved economy? Study says labor force participation at 36-Year Low Watch

Image of The labor force participation rate is defined as the percentage of the civilian non-institutional population who either had a job or was actively seeking one during the month.

By Catholic Online (NEWS CONSORTIUM)

Gas prices may be cheaper, consumer confidence may be higher - but that does not take away from the brutal fact that many Americans remain jobless. A record 92,898,000 Americans 16 and older did not participate in the labor force in December, as the labor force ... continue reading


The Rise and Fall of the World's Poorest Nations Watch

Image of Leaving list of LDCs entials that of productive capacity development, structural transformation resilience building and sustainable improvement in human and social capital.

By Thalif Deen, Inter Press Service

The world's 48 Least Developed Countries (LDCs) - a special category of developing nations created by the General Assembly in 1971 but refused recognition by the World Bank - have long been described as "poorest of the poor" in need of special international ... 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

Reading 1, Jeremiah 20:10-13
10 I heard so many disparaging me, 'Terror on every ... Read More

Psalm, Psalms 18:2-3, 3-4, 5-6, 7
2 Yahweh is my rock and my fortress, my deliverer is ... Read More

Gospel, John 10:31-42
31 The Jews fetched stones to stone him,32 ... Read More

Saint of the Day

Saint of the Day for March 27th, 2015 Image

St. Rupert
March 27: Bishop and missionary, also listed as Robert of Hrodbert. A ... 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