Reading the tea leafs

And then many complain that recovery is being held back by “uncertainty”! This from Randall Kroszner, a fomer Fed Governor:

Kroszner’s summary of Bernanke’s speech: “We’re still not sure–so I’m not getting into that…..We ‘ll investigate further in September…but we may not act.”  Kroszner also said that, with short-term interest rates close to zero and inflation no longer dropping, the Fed has limited powers left to spur growth.

“The Fed can provide the foundations for growth, but it can’t get firms to hire and people to consume,” he said, signaling any further attempt to ease credit would not have much of an effect.

No wonder spending is held back! A bunch of Central Bankers that don´t believe in the power of money and monetary policy!

One thought on “Reading the tea leafs

  1. It is especially appealing when our government officials declare defeat before even trying.

    Yes, human nature has changed in the last 10 years in the USA. You drop a $100 bill on the sidewalk, and no one even stoops to pick it up.

    Printing more money would do nothing.

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