Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Economic News

Fed says monetary policy alone can’t fix employment

Has the U.S. done all it can to fix the economy?

At the Central Bank of Chile’s Fourth Summit Meeting of Central Banks on Inflation Targeting Santiago, Chile, John Williams, president of the San Francisco Federal Reserve, opined that monetary policies set by the Federal Reserve cannot contribute to the economy unless it is combined with prudent fiscal policies.

“Fiscal policy actions that reduce uncertainty and stimulate recovery are badly needed,” he said.

Williams said he expects the unemployment rate to remain above seven percent for at least three more years and won’t hit five to six percent (what the Fed considers full employment) until 2016.

The Fed reduced rates to roughly zero percent in 2008 and has bought $2.3 trillion in bonds to keep the economy afloat, and says they’re in no hurry to raise the rates. Williams said housing remains critical and calls for more government programs to help reduce delinquencies, foreclosures and underwater borrowers.

Advertisement. Scroll to continue reading.

“Bold and decisive actions succeeded in forestalling economic disaster. But they have not been enough to deliver a robust recovery,” he said.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.


Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Business Finance

Federal Reserve Vice Chair, Lael Brainard, vows to curb inflation, with possible interest rate increases and keeping rates higher for longer.

Business News

Unemployment improved more dramatically than expected, potentially throwing a wrench into the Fed's rate hike plan.

Opinion Editorials

(EDITORIAL) Unemployment benefits aren’t what you thought they were. Here's a first-hand experience and what you need to know.

Opinion Editorials

(OPINION / EDITORIAL) I got laid off during the pandemic, and I think I can speak for all of us to say that unemployment...

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.