During his press conference, the Chairman of the Federal Reserve took a different approach than usual. Rather than reading the FOMC statement, where the Fed just announced QE3, he justified Thursday’s new policies, noting asset purchases wouldn’t fuel inflation and they weren’t equivalent to fiscal spending (which adds to the deficit). Interestingly, the Chairman said "I don't think our tools are that strong" to substantially lower the unemployment rate, while adding that if Congress doesn't solve the fiscal cliff issue, he doesn't think the Fed "has the tools to offset" it.
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