Fed Decision

Predictable doesn't even begin to describe what we are seeing. We have been posting on how the government and fed will not stand by and let this economy heal naturally.  It is not in their nature, or self-interest, to do so, and so they will continue to try and "fix" this situation.  The more they fix it, the bigger the problem that lies ahead.  This $600 billion bond-purchase program is just the tip of the iceberg. Remember, Bernanke has said under oath that the Fed would not be monetizing the debt, and now here we are, doing just that....   Inflation, inflation, inflation....

WASHINGTON (AP) -- The Federal Reserve said Wednesday that the economy isn't growing fast enough to lower unemployment and must press ahead with its $600 billion Treasury bond-purchase program.

Ending its first meeting of the year, the Fed made no changes to the program. The decision was unanimous.

The decision came from a new lineup of voting members that includes two officials who have criticized the bond purchases. They have said the purchases could eventually ignite inflation or speculative buying in assets like stocks.

The bond-buying program is intended to lower rates on loans and boost stock prices, spurring more spending and invigorating the economy. Chairman Ben Bernanke faces the challenge of trying to boost hiring and growth without creating new economic threats.

>> Continue reading