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'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for July 2015
Universal:
That political responsibility may be lived at all levels as a high form of charity.
Evangelization: That, amid social inequalities, Latin American Christians may bear witness to love for the poor and contribute to a more fraternal society.



Comments


More Business & Economics

Islamic State attempts to replace the U.S. dollar with gold coins Watch

Image of A five denar piece featuring a picture of seven wheat stalks, representing the

By Kenya Sinclair (NEWS CONSORTIUM)

The Islamic State has announced it will be producing gold currency with the goal of weakening the dollar. LOS ANGELES, CA (Catholic Online) - A video posted Saturday, August 29th by the Islamic State warns that replacing the dollar will be "the second blow to America's ... continue reading


Art collectors seek liquidity as market plummets Watch

Image of Picasso piece auctioned for a record $179.4 million.

By Atarah Haely (NEWS CONSORTIUM)

Inquiries about art loans reportedly increased after global equities plunged. The unfortunate event led many to view their collections as assets and investment to cash-in.  MUNTINLUPA, PHILIPPINES (Catholic Online) - Bloomberg Business reports many collectors and ... continue reading


BIRTHING PAINS - America on brink as markets plunge Watch

Image of Market collapse is just one of many signs that the end is approaching. What comes next?

By David Drudge, Catholic Online (NEWS CONSORTIUM)

The U.S. stock market opened with a bang on Monday, and it appears to be the same sound you hear when something catastrophic happens to your engine. Several commentators have already dubbed the day, "Black Monday" as the market appeared to be on track for its largest ... continue reading


FINALLY: Researchers reveal that sex does not sell Watch

Image of Sex and violence is not an edge in advertising.

By Linky C. (NEWS CONSORTIUM)

Maybe sex doesn't sell after all. This is what studies reveal in a recent academic journal released by the Psychological Bulletin. MUNTINLUPA CITY, PHILIPPINES (Catholic Online) - Violence and sex in commercials does not appear to sell anymore. Compared to themes and ... continue reading


3 great tips on how to spot an online purchasing scam Watch

Image of

By Talia Ramos (NEWS CONSORTIUM)

With a growing population of people having internet access worldwide, there are a lot of businesses outsourced from the World Wide Web. Online shops sprout left and right because of easy access and an almost free platform, but limits in security are present. If ever ... continue reading


BLEEDING U.S. DRY: Federal taxes draining as much as $17,955 per worker Watch

Image of Tax revenues are about $183,397,970,000 in constant 2015 dollars from the $2,489,016,030,000 in revenue that the Treasury collected for 10 months in fiscal 2014.

By Catholic Online (NEWS CONSORTIUM)

They are bleeding the U.S. - and us, dry with massive amounts of taxation. The federal government collected a record of approximately $2,672,414,000,000 in tax revenues through the first ten months of fiscal 2015. And yet - that national deficit just keeps on getting ... continue reading


National debt frozen at $18,112,975,000,000 for 150 days Watch

Image of Treasury Secretary Jacob Lew explained in a letter dated March 13 that some steps the Treasury would take during the debt issuance suspension period.

By Catholic Online (NEWS CONSORTIUM)

Treasury Secretary Jacob Lew has sent out a letter to Congressional leaders telling them that he was extending a "debt issuance suspension period" through October 30. The amount of the federal debt subjected to a legal limit set by Congress closed on Monday, August 10, ... continue reading


America needs Catholic leadership now, and here's how you can make it happen Watch

Image of Rallies have erupted across the country blaming the wealthy for the plight of the poor, but the truth is, everyone is to blame. Regardless of blame, it's time to talk about what to do, and that talk should be informed by Catholic teaching.

By Marshall Connolly, Catholic Online (NEWS CONSORTIUM)

The stock market is poised for a collapse and that's not a good thing for American jobs. As growth slows and the risk of another recession looms, Americans are left to wonder where the good times have gone.  LOS ANGELES, CA (Catholic Online) - Americans are barely ... continue reading


Pope's environmental encyclical clashes with Catholic Church's investments in oil Watch

Image of The pope's encyclical has prompted debate in Catholic organizations and other churches about divestment. To date, many major American dioceses have resisted the push.

By Catholic Online (NEWS CONSORTIUM)

It's a conflict of interest that concerns many. Pope Francis, with the release of his encyclical, called attention to world ecology and how much climate change - as well as the exploitation of the poor, hinges on "highly polluting fossil fuels." While this is ... continue reading


Print Struggles: Internet becomes United States' Number One source for news Watch

Image of Newspapers in seeing the digital revolution have now since gone online.

By Catholic Online (NEWS CONSORTIUM)

When people in the United States want to hear about what's breaking in the news - they turn not to newspapers or TV, but online news sources. The immediacy of online news and its ability to instantly update stories while they happen has many other forms of mass ... 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, First Thessalonians 4:13-18
13 We want you to be quite certain, brothers, about ... Read More

Psalm, Psalms 96:1, 3, 4-5, 11-12, 13
1 Sing a new song to Yahweh! Sing to Yahweh, all the ... Read More

Gospel, Luke 4:16-30
16 He came to Nazara, where he had been brought up, ... Read More

Saint of the Day

Saint of the Day for August 31st, 2015 Image

St. Raymond Nonnatus
August 31: Raymond was born at Portella, Catalonia, Spain. He was delivered ... 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