In the first of what is being promised as an ongoing dialog, directly with the American people, Federal Reserve Chairman Ben Bernanke held a press conference yesterday.
What he told us, essentially, is that inflation is going up, growth estimates are going down, unemployment is going to stay abysmally high, and the dollar is still in the tank. I feel better now, don’t you?
In his first regular news conference, Federal Reserve Chairman Ben Bernanke said the central bank was continuing its stimulus policy because it was projecting slower growth in the economy with only a modest uptick in inflation.
The Fed cut its growth estimate for 2011 to between 3.1 percent and 3.3 percent from a January forecast of 3.4 percent to 3.9 percent.
The Fed also raised its estimate of inflation this year to a range of 2.1 percent to 2.8 percent, taking into account a recent surge in oil prices. However, it bumped its core inflation forecasts only marginally to a 1.3 percent to 1.6 percent range.
As for unemployment, it lowered its forecast but said it would stay elevated over its three-year forecast period. For 2011, the Fed said it expects the unemployment rate to land in a 8.4-8.7 percent range, better than a range of 8.8-9.0 percent forecast in January.
Now, that wild and crazy guy named Ron “I’m-Always-Running-For-President” Paul was not the least bit impressed with Bernanke’s performance… and even beyond the usual kooks and spooks, Bernanke got an F (even from WSJ readers). Overall, however, Big Ben did not seem to fare all that badly around the usual lamestream haunts.
Wall Street didn’t get too upset either…according to the US Taxpayer-subsidized Liberal news wing of the Obama Administration… and, by and large, most folks appear to be just hunky dory with letting things continue on their merry little way until we need to print more money.
Nothing to see here people, move along.