Fed Sets Stage for Stimulus
Fed Sets Stage for Stimulus Speaking at the Fed's annual retreat in the Wyoming resort city of Jackson Hole, Bernanke offered a spirited defense of his unconventional efforts over the past three years to stimulate economic activity through the purchase of government and mortgage bonds. And he seemed to signal that more steps would be taken soon. www.mcclatchydc.com/2012/08/31/164576/bernanke-signals-more-stimulus.html His stark language gave a temporary lift to U.S. stocks, but economists walked away from the Fed chairman's remarks still divided over whether the central bank would launch a fresh round of bond purchases at its upcoming meeting in September. Bernanke said the Fed had to weigh the costs as well as the benefits of more monetary stimulus, although he hinted the costs were likely worthwhile. "As we assess the benefits and costs of alternative policy approaches ... we must not lose sight of the daunting economic challenges that confront our nation," Bernanke said. mobile.reuters.com/article/idUSBRE87T1HT20120831?irpc=932 The job market is still in horrible shape, and the Fed will probably, finally, do something about it very soon. In a highly anticipated speech at Jackson Hole, Wyoming, Friday morning, Federal Reserve Chairman Ben Bernanke described "the daunting economic challenges that confront our nation," particularly the labor market. Bernanke suggested the Fed could and should help fight unemployment, in language that all but promised the Fed would act -- perhaps within a matter of weeks. "This is another clear sign that the Fed is ready to provide more policy stimulus," Paul Dales, senior U.S. economist said. www.huffingtonpost.com/2012/08/31/ben-bernake-growth-unemployment-fed-action_n_1846529.html The unemployment rate fell to 8.1 percent from 8.3 percent in July. But that was only because more people gave up looking for work. People who are out of work are counted as unemployed only if they're looking for a job. The government also said Friday that 41,000 fewer jobs were created in July and June than first estimated. The economy has added just 139,000 jobs a month since the start of the year, below 2011's average of 153,000. www.foxnews.com/us/2012/09/07/us-economy-adds-6k-jobs-unemployment-rate-falls-to-81-percent/ Detroit police officers say pay cuts will hurt department, residents "This will set us back 20 years," Curtis said. "We fought hard to get where we are now." www.freep.com/article/20120719/NEWS01/207190560 Like most city employees, most police officers are about to get hit with a 10% pay cut.They also face other cutbacks and major changes—including working twelve-hour shifts—as the department, and the city, try to re-align in the face of major budget cuts. The first major step, the 10% pay cut, will kick in within days. Changes to health insurance, pension and other benefits will go into effect in the fall. michiganradio.org/post/detroit-financial-advisory-board-hears-police-officers-pleas-gets-eviction-notice DETROIT (AP) - Dozens of Detroit police officers swapped their side arms for picket signs Thursday as they marched around City Hall to protest a new contract and pay cut imposed on them byMayor Dave Bing. Although the protestors' numbers swelled to several hundred as firefighters and others joined in, city workers' options are limited under a consent agreement that wrestled power away from organized labor and placed it in the mayor's hands. Years of shoddy city administration and poor budgeting are haunting Detroit. The city's budget deficit is more than $200 million. Structural debt is in the billions of dollars. www.gopusa.com/news/2012/07/27/detroit-city-workers-protest-10-percent-pay-cut/ Deadliest city in America plans to disband its entire police force and fire 270 cops to deal with budget crunch. www.dailymail.co.uk/news/article-2193971/Camden-police-disbanded-270-officers-fired-amid-budget-crunch.html Budget cuts leave Camden, N.J., without a police dept articles.nydailynews.com/2012-08-27/news/33430267_1_police-president-john-williamson-camden-police-force-gwendolyn-faison What happens to Camden, N.J., now that it's lost half its police force? www.slate.com/articles/news_and_politics/crime/2011/01/officers_down.html
