Fed says economy growing only modestly; could mean longer period of bond buying

  • Article by: MARTIN CRUTSINGER , AP Economics Writers
  • Updated: July 31, 2013 - 2:15 PM

WASHINGTON — The Federal Reserve stopped short of signaling any timetable Wednesday for slowing its bond buying.

  • 8
  • Comments

  • Results per page:
  • 1 - 8 of 8
jpjc54Jul. 31, 13 2:00 PM

For those financially illiterate continued bond buying by the Federal Reserve devalues the currency and eventually means the Fed will lose the ability to have any meaningful control as it relates to interest rate. Next stop $10.00 boxes of cereal and $10.00 gallon of gas.... that's what fed bond buying does for you....wake up !

13
7
theagonybhoJul. 31, 13 2:14 PM

It should be downgraded to anemic, 1st quarter GDP lowered from 1.8 to 1.1 and now we learn Obama admin is now calculating GDP differently which added half a trillion in growth. Embarrassing.

14
6
kilofoxJul. 31, 13 2:26 PM

All it's doing is devaluing our dollar and will make the market crash when it comes even harsher. You might as well take your medicine now than wait for more damage.

13
7
CountChoculaJul. 31, 13 3:34 PM

Anemic in part because the GOP put the brakes on stimulus spending ... the same type of spending that built that gorgeous 1930s Eccles Federal Reserve building pictured, and WPA structures all around the country. Also, companies are sitting on cash and not hiring. Monetary policy can only do so much, and this is not the time for fiscal austerity.

9
8
radseniorJul. 31, 13 3:51 PM

The financial crisis likely cost at least a year's worth of U.S. economic output, a new Fed study finds. Worse, it's hurting the economy even now and will hurt it for years to come. That is the cheerful conclusion of a new study by economists at the Dallas Federal Reserve, entitled "How Bad Was It? The Costs and Consequences of the 2007–09 Financial Crisis." So how bad was it? Really, really bad: The economists say a "conservative" estimate of the damage is $14 trillion, or roughly one year's U.S. gross domestic product. This is based on how much output was lost during the crisis and Great Recession, along with all the damage done to potential future economic growth. It's been a long hard haul, but consider how much better off we would be had the TEA-Republicans worked with president Obama. Now we need to remove the obstacles - TEA party and Republicans standing in the way. There must be a concerted effort by students, women, blacks, Hispanics/Latinos and others of color to remove these obstructionist from office. The 2014 Mid-term is a-coming! As is 2016, and 2018! V.O.T.E.(Vote Out The Encumberance)

9
4
vlombardyJul. 31, 13 5:04 PM

The Fed's reserves are now over $3 TRILLION--mostly in treasuries and MBS, paid by money created out of thin air. If you're going to create money out of thin air, better for the government to do it and give money interest free to individuals and business. If you create 3 trillion dollars and use it to increase the productivity of the economy by 3 trillion dollars, there's no inflation. Without increased productivity inflation is assured. And that's where we are.

2
3
jd55604Jul. 31, 13 5:48 PM

Governments have a long history of debasing currencies in order to fund their deficit spending and this is precisely what's going on here in the U.S. You can't expand the money supply without first having an increase in GDP otherwise you have too many dollars chasing not enough goods/services (inflation). What our Fed is and has been doing is not much different than what Zimbabwe did 10 years ago when they trashed their currency. The only difference is that we have the ability to play the game a lot longer than they did. The end result will be the same though.

1
3
theruntJul. 31, 1310:05 PM

I'm going to start watching Fox News, so I, too, can be smarter than the members of the Federal Reserve Board.

3
0
  • 1 - 8 of 8

Comment on this story   |  

ADVERTISEMENT

Connect with twitterConnect with facebookConnect with Google+Connect with PinterestConnect with PinterestConnect with RssfeedConnect with email newsletters

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT