Bernanke unemployment high, Labor Day weekend August 31, 2012, Fed can do more, Economic recovery far from satisfactory, Jobless claims 374,000
“We tried our plan—and it worked. That’s the difference. That’s the choice in this election. That’s why I’m running for a second term.”…Barack Obama
“after 29 months of allegedly stellar job growth under Obama, the jobless rate is still 8.3%. By this point in the Reagan and Bush jobs recoveries, the unemployment rate was 7.2% and 4.9%, respectively. If we were one of those fact-checking organizations, we’d give Stephanie Cutter the “Lying Liar from Liersburg” award.”…News Busters August 26, 2012
“And if all others accepted the lie which the Party imposed
–if all records told the same tale–then the lie passed into
history and became truth. “Who controls the past,” ran the
Party slogan, “controls the future: who controls the present
controls the past.”…George Orwell, “1984″
From Boston.com August 31, 2012.
“Bernanke: With unemployment high, Fed can do more”
“Chairman Ben Bernanke made clear Friday that the Federal Reserve will do more to boost the economy because of high U.S. unemployment and an economic recovery that remains ‘‘far from satisfactory.’’
He also argued that the Fed’s moves so far to keep interest rates at record lows and encourage borrowing and spending have helped bolster the economy.
Bernanke stopped short of committing the Fed to any specific move, such as another round of bond purchases to lower long-term rates. But in a speech at an annual Fed conference in Jackson Hole, Wyo., Bernanke said that even with rates at super-lows, the Fed can do more.
After Bernanke’s comments were released at 10 a.m. Eastern time, stocks initially gave up most of their earlier gains. But as investors digested the speech, stocks bounced back. By late morning, the Dow Jones industrial average was up more than 100 points. Broader stock indexes also surged.
Bernanke noted that further action carries risks but says the Fed can manage them. The Fed ‘‘should not rule out’’ new policies to improve the job market, he said.
The most dramatic step the Fed could take would be another round of bond buying. This is known as quantitative easing, or QE. In two rounds of QE, the Fed bought more than $2 trillion of Treasury bonds and mortgage-backed securities. Many investors have been hoping for a third round — QE3— to be unveiled as soon as the Fed’s next policy meeting in September.
In light of Bernanke’s comments Friday, some analysts said that might be a stronger possibility now.”
“In his speech, Bernanke cited studies showing that the Fed’s first two rounds of bond purchases created at least 2 million jobs.”
“Bernanke’s comments Friday made clear that the economy has a long way back to full health.
‘‘Unless the economy begins to grow more quickly than it has recently, the unemployment rate is likely to remain far above levels consistent with maximum employment for some time,’’ he said.”
From the US Labor Department August 30, 2012.
“In the week ending August 25, the advance figure for seasonally adjusted initial claims was 374,000, unchanged from the previous week’s revised figure of 374,000. The 4-week moving average was 370,250, an increase of 1,500 from the previous week’s revised average of 368,750.”