As was expected, there was no change in the formal interest rate policy. However, watching the press conference was interesting in that Mr. Bernanke hinted several times at additional monetary stimulus that was ready to be provided – if necessary.
The FED downgraded their economic outlook. The most recent FOMC statement release changed from last month’s, when there were modest signs of growth. Blame for this was placed on the natural disaster in Japan, and the debt problems in Europe.
Mr. Bernanke also was forward in his thoughts that monetary policy alone cannot solve the unemployment issue. He has previously suggested that its “up to Congress” to apply Fiscal stimulus to the Fed’s Monetary stimulus. Bernanke seems disappointed that the massive stimulus which the FED has already provided has done little to help bring down the unemployment rate.
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