Ben Bernanke and his gang of criminals called the Federal Reserve still haven’t learned their lesson. QE2 was a slick way of devaluing the US currency, hence our living standards has been a disaster. Now there is word the Fed will do “Operation Twist.”. They plan to move their portfolio from short term securities, into longer term debt. What this will accomplish, I can only dread.
WASHINGTON (AP) – The Federal Reserve is running out of options to try to boost a slumping economy and lower unemployment. So policymakers are expected to reach 50 years back into their playbook for their next move.
Most economists expect the Fed to announce a plan Wednesday to shift money in its $1.7 trillion portfolio out of short-term securities and into longer-term holdings.
The plan could lower Treasury yields further. Ultimately, it could reduce rates on mortgages and other consumer and business loans, too.
Fed Chairman Ben Bernanke is expected to advocate the move despite criticism from within the Fed and from Republican lawmakers and presidential candidates.
On Monday, the four highest-ranking Republicans in Congress sent Bernanke a letter cautioning the Fed against taking further steps to lower interest rates. Their letter suggested that lower rates could escalate the risk of high inflation.
The plan the Fed is considered most likely to unveil Wednesday has been dubbed “Operation Twist” and dates to the early 1960s. The Fed used a similar program then to “twist” long-term rates lower relative to short-term rates.
Read the rest: Fed is expected to take new action to lift economy
The best thing for the economy is for the Federal Reserve to do nothing. They have damaged the living standards of the American people. The solution to our problems must be solved by a new President and a more Conservative Congress. Nothing that Ben Bernanke does can solve anything.
