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Thursday, September 22, 2011

Full Text of FOMC Statement. Monetary Policy is not the problem at this moment in time.


http://www.federalreserve.gov/newsevents/press/monetary/20110921a.htm

6 comments:

WillWorkForQE3 said...

It is quite the disappointment that what will undoubtedly be three straight years of an unemployment rate over 7% isn't considered unusual or exigent.........

Randall Parker said...

What if this is as good as it gets?

WillWorkForQE3 said...

This as in what? As in 9.1% unemployment? This doesn't have to be France, does it?

If by this you mean operation twist part deux, it wont be as good as it gets b/c the markets and public wont allow it to be all after its (lack of) effects are shown. Bernanke needs to go read some of his own writings regarding Japan. I can not wait until is memoirs are published.

BTW, didn't I read that Kocherlakota was done dissenting after the initial "mid-2013" statement?

Randall Parker said...

If he said that he misled people. I think he and Fisher and Plosser are of the opinion that the Fed has shot its bullets. I agree.

Tiger'sWood said...

Out of ammo? Not according to S Sumner. Hey Doc, even ya' boy JD Hamilton recently asked for an explicit price level growth rate and another round of LSAP. The Fed seems to have given up on the American peeps. You can bet he has a seat waiting for them in the Princeton Econ dept. after his tenure as chairman - while the rest of the country is standing in the unemployment line.

Randall Parker said...

Well I have been very clear regarding the threat of deflation and what the Fed should do there. And operation Twist or QEIII or QE XXII, at this point in time, if the only effect is to lower the long-term rate by 10 basis points, then on the margin what good will that do? Not much in my book. Our problems now are not monetary in nature. Oh and throw Jesus in there too as "my boy."