Monday, September 30, 2013

Charlie Rose Show - A discussion about the Federal Reserve with Alan Blinder of Princeton University, David Leonhardt of the New York Times and Gillian Tett of the Financial Times.


I watched the Charlie Rose Show about the Federal Reserve decision of ending the bond issuing campaign. The analysts on the table were surprise with the move of the Federal Reserve. They claim that the Fed has made the same mistake before and that the Fed continues to make the same mistake over and over again; they claim that the worst mistake of the Fed is being too optimistic with the growth of the economy. The Fed is running low on weapons to bring the economy up, what they are doing now is a verbally intervention, which means that what they say is to bring the confidence back to the population. However, by saying good things means that they will need to fulfill what they promised otherwise the move will back fire them. The analysts also state that the unemployed rate does not tell totally about how well the economy is doing because it does not count those that quit looking for jobs. 

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