Fed’s Williams: Essential to keep monetary stimulus in place

April 5, 2012 by · Leave a Comment
Filed under: Opinion 

He is right.  We do need to continue to keep aggressive polices in place to support this recovery.  I appreciate the amount of honesty I am read and watching as of late.  The only problem is that is underlines how precarious of a position we are in, not just the United States but globally.  We are now fully inter-connected and dependent on one another.   After reading this article, I wonder if Mr. Williams included the U.S. as one of the countries that has “unsustainable debt levels” and have not been resolved?

WSJ – It is essential for the Federal Reserve to provide strong stimulus to the economy under current economic circumstances, a top central banker plans to say Wednesday.

“It’s essential that we keep strong monetary stimulus in place,” John Williams, president of the Federal Reserve Bank of San Francisco, is scheduled to say, according to the text of a speech to be delivered as part of the SPUR Business Breakfast Series in San Francisco.

“The recovery has been sluggish nationwide, not just in states hit hard by the housing bust,” Williams plans to say. “High unemployment, restrained demand, and idle production capacity are national in scope. These are just the sorts of problems monetary policy can address.”

Williams, a voting member of the monetary policy-setting Federal Open Market Committee, delivered a similar speech at the University of San Diego School of Business Administration Tuesday. He did not lay out what else the Fed might do to support the economy.

Even though Williams is encouraged by recent signs of a “stronger, self-sustaining recovery,” he thinks the economy has a long way to go, according to the text. Access to credit is still limited, uncertainty is holding back the recovery as businesses and households remain skittish and the financial turmoil in Europe has added another dimension to the unease.

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