After months and billions of dollars of bond buying in order to stimulate the economy, the economy declined. So the Federal Reserve is going to continue to do more of the same. What could possibly go wrong?
The Federal Reserve on Wednesday left in place its monthly $85 billion bond-buying stimulus plan, saying economic growth had stalled but indicating the pullback was likely temporary.
Describing the nation’s job market as continuing its modest pace of improvement, the Fed repeated a pledge to keep purchasing securities until the outlook for employment improves substantially.
“Growth in economic activity paused in recent months, in large part because of weather-related disruptions and other transitory factors,” the Fed said in its January policy statement.
It added business investment had picked up as financial conditions eased in recent months. (Read More)
In related news, the Democrats were almost giddy after they heard about the decline in GDP, calling it the “best looking contraction in GDP you’ll ever see.”
Update: The First Street Journal has more on Chairman Bernanke’s persistent insistence on continuing to do what hasn’t worked.
Update: Expose the Media linked – thanks!