The U.S. economy barely grew in the first quarter of 2014, frustrating experts who expected a significantly stronger performance, according to today's New York Times. With growth at a near standstill there is wonderment over the Fed's announced intention to continue pulling back on stimulus measures.
Of course, stimulus measures of the kind the Fed engages in carry their own risks -- such as raising fears of inflation as well as exacerbating worries of a destabilized financial system down the road. The Federal Open Market committee expressed confidence in their decision to pull back on Treasury and market-backed securities. Fed chairwoman, Janet Yellin, indicated confidence in the direction the Fed is taking in a recent speech. She declared the Fed is focused on the right things.
Despite all the talk of confidence in the economy, underlying factors such as a weak labor market remain areas of concern. Federal Reserve members who have a seat at the meeting table should spend a day at an employment office and really listen to actual applicants seeking work in a tough economic environment.
Of course, stimulus measures of the kind the Fed engages in carry their own risks -- such as raising fears of inflation as well as exacerbating worries of a destabilized financial system down the road. The Federal Open Market committee expressed confidence in their decision to pull back on Treasury and market-backed securities. Fed chairwoman, Janet Yellin, indicated confidence in the direction the Fed is taking in a recent speech. She declared the Fed is focused on the right things.
Despite all the talk of confidence in the economy, underlying factors such as a weak labor market remain areas of concern. Federal Reserve members who have a seat at the meeting table should spend a day at an employment office and really listen to actual applicants seeking work in a tough economic environment.
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