Friday, November 6, 2009
10.2% unemployment rate highest in 26 years and they still think the Fed can fix this with low rates!!
The nation's unemployment rate rose to the highest level in 26 years and there is not a word being spoken about additional--and aggressive--stimulus (tax cuts and government spending).
Instead, our President and our policymakers are leaving the job up to the Fed, which has ZERO ability to increase aggregate demand. The Fed can only set interest rates and it has set them at zero, which effectively acts like an income cut to so many people who rely on interest income to live.
The Fed's quantitative easing is not only not helping, it is making the situation worse.