The U.S. Federal Reserve wrapped up a two-day meeting today in the wake of ongoing disappointing economic news. The financial recovery has been happening very slowly, the unemployment rate has been stalled at 8.2% and economic forecasts for this year have already been downgraded as concerns linger over spillover effects from the European debt crisis.
Due to the political gridlock in Congress, Democrats have been pushing Federal Reserve chairman Ben Bernanke to take some sort of action in an effort to spur the economy. However, after the meeting concluded officials said that the Reserve will not be initiating any new steps towards recovery at this time.
What does this mean for the economy? Are members of the Federal Reserve just scared of meddling further in the economy? What can and should the Fed to do stimulate the economy and ease unemployment? Is it time for another round of stimulus?
Matt DeBord, KPCC economy reporter and writer of the DeBord Report