David Kirkpatrick

September 9, 2010

Latest Beige Book outlook not so bright

Filed under: Business, Politics — Tags: , , , , , — David Kirkpatrick @ 11:15 am

The Great Recession, the near-depression, economic downturn — whatever you want to label the economy of the last years with, it all comes down to it’s not good, hasn’t really gotten appreciably better for Main Street and doesn’t really seem like tangible recovery is even visible on the horizon. So it’s another fall of keeping the chin up and tightening the belt a little bit more once again.

From the link:

The mixed picture is in line with government data released last month that showed U.S. gross domestic product, the broadest measure of economic activity, was much weaker in the second quarter than previously estimated.

The nation’s GDP was revised sharply lower to an annual growth rate of 1.6% in the three months ending in June. The initial reading had been for a 2.4% growth rate in the period.

Fed chairman Ben Bernanke acknowledged in a speech late last month that the U.S. economic recovery has lost considerable steam. But he said the central bank is prepared to use “unconventional measures” to boost the economy if the outlook were to “deteriorate significantly.”

In its Aug. 10 policy statement, the Fed announced plans last month to begin reinvesting proceeds from securities in its $2 trillion portfolio in to U.S. Treasurys. The central bank had bought billions worth of government debt two years ago to keep interest rates low on home and other consumer loans. But minuets from the August meeting subsequently showed that Fed officials were unusually divided over the policy.

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