Tuesday, August 2, 2011

Fed May Weigh More Stimulus on Slow Recovery

Sure, why not? It worked so swimmingly the last 2 times. And I'm being totally serious. The economic degradation we've seen over the last few years is exactly what they wanted, their rhetoric notwithstanding. I mean, seriously...if the last 2 rounds of Quantitative Easing created all this chaos, and they now want to do it again, common sense...oh never mind.

    Bloomberg -

    Federal Reserve policy makers may start weighing additional steps to prop up the recovery after growth fell below 1 percent in the first half of this year and economists began cutting second-half growth forecasts.

    “At a minimum, the FOMC will have a serious debate about the policy options -- what they should do, and what they expect to get from it,” said Roberto Perli, a former associate director in the Fed’s Division of Monetary Affairs, referring to the Federal Open Market Committee. “Growth in the first half was dangerously close to zero,” said Perli, director of policy research at International Strategy & Investment Group.

    The FOMC will meet Aug. 9 in Washington after the government marked down its measure of economic growth to annual rates of 0.4 percent in the first quarter and 1.3 percent in the second, casting doubt on the Fed’s June outlook of 2.7 percent to 2.9 percent growth for this year. A gauge of U.S. manufacturing, a main engine for the expansion, slumped last month to the lowest level in two years.

Read it all.