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Economy May Be Getting Its Wings Clipped

Wall Street Journal Original article ›

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Economists predict annualized growth of 0.9% for the second quarter U.S. GDP growth, suggesting that the U.S. economy is stalling and the U.S. Federal Reserve will continue its bond buying QE program.

U.S. quarterly GDP and economic growth for 2012-2013

04/27/2012

Grouped Articles

Economic Growth Stays Soft

Wall Street Journal 04/28/2013

Economy May Be Getting Its Wings Clipped

Wall Street Journal 07/30/2013

Tepid Growth Restrains Fed

Wall Street Journal 08/01/2013

BofA Chief Says Fed Will Keep Pace

Wall Street Journal 11/07/2013

U.S. Economy Begins to Hit Growth Stride

Wall Street Journal 12/21/2013

U.S. Starts to Hit Growth Stride

Wall Street Journal 01/30/2014

Vanguard's Bill McNabb on the cost of uncertainty for the U.S. economy in lower GDP growth and higher unemployment- 2011-2014

04/28/2013

Vanguard economists estimate the cost of uncertainty in deficit reduction policy, uncertainty in monetary policy, uncertainty in foreign policy, uncertainty for business investment, places a drag on the U.S. economy of $261 billion. Stanford University economists Bloom and Baker and University of Chicago economist Davis have done work showing the level of uncertainty in 2011-2012 continuing into 2013 is about 50% higher than the level seen since 1985. Vanguard economsts based their analysis and estimates on this work and identified specific events leading to the overall uncertainty. This has cost the U.S. economy about 1 million jobs, with job growth being 45,000 per month higher without this overall uncertainty hanging over the economy, according to Vanguard estimates.

Grouped Articles

Uncertainty Is the Enemy of Recovery

Wall Street Journal 04/28/2013

Job Gains Calm Slump Worries

Wall Street Journal 05/04/2013

Economy May Be Getting Its Wings Clipped

Wall Street Journal 07/30/2013

Tepid Growth Restrains Fed

Wall Street Journal 08/01/2013

Weak Job Data May Weigh on Fed’s Decision on Stimulus

New York Times 10/22/2013

Confronting Old Problem May Require a New Deal

New York Times 01/28/2014

U.S. Federal Reserve's 6.5% unemployment target with 2% inflation announced by Bernanke in Dec. 2012

01/27/2009

The U.S. Fed's chairman Bernanke says the Fed will keep rates low till unemployment reaches 6.5% citing "the tremendous waste in human potential" of high unemplyment rates. As long as inflation remains subdued at 2% the Fed will continue its current policy of low rates. In 2013 the Fed will continue bond buying at the rate of $85 billion a month. If unemployment drops to 6.5%, but this is because more people are dropping out of the labor market the Fed will take this into account, says Bernanke. The Fed will also keep an eye out for asset bubbles in the economy.

Grouped Articles

Stimulus and the Depression: The Untold Story

Wall Street Journal 09/26/2011

Fed Officials Try to Set the Market at Ease

Wall Street Journal 06/24/2013

Job Gains Show Staying Power

Wall Street Journal 07/05/2013

Fed Affirms Easy-Money Tilt

Wall Street Journal 07/11/2013

FX HORIZONS: The Fed’s Risky Codependency with Markets

Wall Street Journal 07/11/2013

Bernanke Plays Down Link Between Jobless Rate, Fed Moves

Wall Street Journal 07/18/2013


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