David Kirkpatrick

April 29, 2009

The economy stumbles on

Filed under: Business, Politics — Tags: , , , , — David Kirkpatrick @ 1:49 pm

It’s not imploding, but it’s not getting better just yet. Watch the indicators — such as the still falling GDP and rising unemployment, and on the positive side a rising consumer confidence — before you believe any media hype.

For the most part the media ignored this story until it reached crisis level (I’ve been blogging about the financial meltdown since the first days of this blog) and then went into full “we’re doomed!” mode. After scaring the pants off of everyone, the media is now going with things are better and the worst is over. Don’t go to the bank with that bill of goods.

Here’s the latest from the Fed:

Taking fresh stock of economic and financial conditions, Federal Reserve policymakers are considering whether they need to take additional measures to ease the recession.

Most economists are betting there won’t be any major announcements Wednesday at the end of a two-day meeting given the Fed’s bold $1.2 trillion move just last month to revive the economy.

Still, analysts aren’t ruling anything out as credit and financial stresses persist and a new potential danger has arisen to the economy in the form of the swine flu outbreak.

“Never say never with these guys. But I don’t think they have a real reason to increase support at this time,” said Michael Feroli, economist at JPMorgan Economics.

Fed Chairman Ben Bernanke and his colleagues are all but certain to leave the targeted range for its key bank lending rate between zero and 0.25 percent.

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