Federal Reserve Chairman Ben Bernanke threw cold water on the improving economic outlook Wednesday, saying further significant declines in unemployment are not likely without stronger economic growth.
“Continued improvement in the job market is likely to require stronger growth in final demand and production,” Bernanke told the House Financial Services Committee in his semiannual report to Congress on monetary policy.
[i]Bernanke said the steep drop in the jobless rate since September, from 9% to 8.3%, has been surprising in light of relatively tepid economic growth[/i]
The strongest dose of unvarnished truth this man has ever publically uttered.
1. Since when is a supposed drop of .7% in 7 months steep?
2. Remember August when job grow was numerically 0?
3. The supposed +200k job growth number in January was all due to “seasonal adjustment”, read, fudge!
4. The official unemployment figures do not count people who have given up the search for jobs. Estimates of true unemployment top 11%.
5. Rising gasoline prices have to dampen economic activity.
6. But wait til the tax implications of Obamacare kick in. Dividends taxed at >40%, capital gains at 40%.
At some point, increasing the flood of dollars will have only one effect; to devalue the dollar. You can’t fiscally stimulate a dead body.