Fed Chairman Bernanke: Conditions Need to be Better

By: Associated Press Email
By: Associated Press Email

WASHINGTON (AP) The economy still needs to do better. That's the conclusion of the Federal Reserve, in deciding today against reducing its stimulus for the U.S. economy.

In a surprise move, the Fed said it will keep buying $85 billion a month in bonds while it awaits conclusive evidence that the economy is strengthening.

Chairman Ben Bernanke says, "Conditions in the job market today are still far from what all of us would like to see."

In a statement, the Fed said the economy is growing moderately, and that some indicators of the job market have shown improvement. But it noted that rising mortgage rates and government spending cuts are restraining growth. The statement said the rise in interest rates "could slow the pace of improvement in the economy and labor market" if it continues.

Stocks surged after the Fed released the statement at the end of its two-day policy meeting. Many investors had taken it for granted that the Reserve would ease back on its bond-buying program.

Join the Conversation!

To comment, the following rules must be followed:

  • No Obscenity, Profanity, Vulgarity, Racism or Violent Descriptions
  • No Negative Community Comparisons
  • No Fighting, Name-calling, Trolling or Personal Attacks
  • Multiple Accounts are Not Allowed
  • Stay on Story Topic

Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.

Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Questions may be sent to comments@kbtx.com. Please provide detailed information.

powered by Disqus
KBTX-TV Channel 3 4141 E. 29th Street Bryan, TX 77802 Phone: (979) 846-7777 Fax: (979) 846-1490 News Fax: (979) 846-1888
Copyright © 2002-2015 - Designed by Gray Digital Media - Powered by Clickability 224300011 - kbtx.com/a?a=224300011
Gray Television, Inc.