{"id":1190,"date":"2012-12-13T17:47:43","date_gmt":"2012-12-13T17:47:43","guid":{"rendered":"http:\/\/megalextoria.wordpress.com\/?p=1190"},"modified":"2012-12-13T17:47:43","modified_gmt":"2012-12-13T17:47:43","slug":"bernanke-wields-new-tools-to-reduce-unemployment-rate","status":"publish","type":"post","link":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/2012\/12\/13\/bernanke-wields-new-tools-to-reduce-unemployment-rate\/","title":{"rendered":"Bernanke Wields New Tools to Reduce Unemployment Rate"},"content":{"rendered":"
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Chairman Ben S. Bernanke moved the Federal Reserve further into uncharted policy territory in combating joblessness by tying the bank\u2019s interest-rate outlook to unemployment and inflation, while committing to an even faster expansion of the central bank\u2019s balance sheet.<\/p>\n

The actions on the eve of the Fed\u2019s centenary year underscore Bernanke\u2019s hallmark commitment to experimentation and forceful action, derived in part from his research showing too little monetary stimulus produced large economic costs for the U.S. in the 1930s and for Japan in the 1990s. He called the current state of the labor market, with unemployment at 7.7 percent, \u201can enormous waste of human and economic potential\u201d and said the benefits of more bond buying outweigh the potential risks.<\/p>\n

\u201cBernanke is pulling out all the stops to kick this economy back into a higher gear,\u201d said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. \u201cThey are buying everything in sight \u2014 Treasuries, mortgage-backed securities \u2014 and will keep rates low until everyone who wants a job has one.\u201d<\/p>\n

Bonds fell yesterday on the prospect of higher inflation after policy makers boosted their main stimulus tool by adding $45 billion of monthly Treasury purchases to an existing program to buy $40 billion in mortgage debt a month. That decision puts the Fed\u2019s $2.86 trillion balance sheet on track to reach almost $4 trillion by the end of next year.<\/p>\n

The yield on the 10-year note was little changed today, and traded at 1.69 percent at 9:13 a.m. in London. The yield on the 30-year Treasury bond rose one basis point to 2.896 percent.<\/p>\n

Full article: http:\/\/www.bloomberg \u2026 employment-rate.html<\/a><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Chairman Ben S. Bernanke moved the Federal Reserve further into uncharted policy territory in combating joblessness by tying the bank\u2019s interest-rate outlook to unemployment and inflation, while committing to an even faster expansion of the central bank\u2019s balance sheet. The actions on the eve of the Fed\u2019s centenary year underscore Bernanke\u2019s hallmark commitment to experimentation and forceful action, derived in part from his research showing too little monetary stimulus produced large economic costs for the U.S. in the 1930s and for Japan in the 1990s. He called the current state of the labor market, with unemployment at 7.7 percent, \u201can enormous waste of human and economic potential\u201d and said the benefits of more bond buying outweigh the potential risks. \u201cBernanke is pulling out all the stops to kick this economy back into a higher gear,\u201d said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. \u201cThey are buying everything in sight \u2014 Treasuries, mortgage-backed securities \u2014 and will keep rates low until everyone who wants a job has one.\u201d Bonds fell yesterday on the prospect of higher inflation after policy makers boosted their main stimulus tool by adding $45 billion of monthly Treasury purchases to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[249,289,648,692],"class_list":["post-1190","post","type-post","status-publish","format-standard","hentry","category-news-and-politics","tag-audit-the-fed","tag-bernake","tag-end-the-fed","tag-federal-reserve"],"_links":{"self":[{"href":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/1190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/comments?post=1190"}],"version-history":[{"count":0,"href":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/posts\/1190\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/media?parent=1190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/categories?post=1190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.megalextoria.com\/wordpress\/index.php\/wp-json\/wp\/v2\/tags?post=1190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}