“There’s no silver bullet right now,” and central bankers have “very few options left in terms of lowering interest rates,” said John Silvia, chief economist at Wells Fargo Securities LLC in Charlotte, North Carolina.
But that does not mean they are content to leave the economy alone as the article outlines.
N'keya Peters (Tue, Thur 8am-9:20am)
ReplyDeleteI think it is interesting that this article talks about how the Federal Reserve is trying to stimulate the economy yet people are saying that the economy is fine. It is very confusing. It's also interesting that the chiefs of different banks in the reserve can not agree on the appropriate action to take. If they can't agree how do they expect people to support their decisions?
I think no matter what benefits this plan has to offer, there's going to be disagreement and someone is going to be upset. But the fact that the Fed officials themselves can't even agree on what to do, it's going to make this decision much harder. The only thing they seem to agree on is that some sort of action needs to be taken, but the purchase of $500 billion of long term securities doesn't seem to please many people
ReplyDeleteAlexis Haas
TR 8-9:20
Federal Reserve is trying its best to stimulate world’s biggest economy. The Fed’s decision of buying $500 billion is I think very wise because it will increase the flow of cash in the economy. The article also mentions that this buying of bonds will help country to reduce the unemployment rate. Although, the problem with this proposal is that the inflation rising, but as many economist says that little inflation is healthy for the economy. Also, it seems that the Fed and banks official cannot come up with a solution which is ridiculous and they try to find their interest in the proposed plans. Fed should take responsibility of finalizing the plan and stimulate the economy in the interest of the Americans.
ReplyDeleteMuktak Tripathi
MWF, 2:00-2:50 P.M.
Daniel Moore MWF 2:00pm-2:50pm
ReplyDeleteI believe that Ben Bernanke and the entire Federal Reserve have the best interest of the United States on their minds at all times. However, the current economic situation in the U.S. is grim. The latest recession is recovering much slower than originally projected. The newest unemployment rate for November was 9.6%, which is actually up from the month before. Perhaps the FED should just be patient and allow the economy to grow slowly. There have been several stimulus packages created already, totaling several billion dollars. I believe that buying another $500 billion of securities over the next six months will not be as beneficial to the economy as the FED currently believes. It is certainly no coincidence that there is much disagreement and confusion regarding the Federal Reserves current plan. In times of such great uncertainty, perhaps the FED should stop gambling with treasury and allow the economy to expand.