More signs of "the Obama recovery" - Fed shows optimism - says economic decline has halted.

[jefferson_dem]

Central bank says the long decline for the U.S. economy appears to have ended, although it's likely to remain weak for awhile.
By Chris Isidore, CNNMoney.com senior writer
Last Updated: August 12, 2009: 2:46 PM ET

NEW YORK (CNNMoney.com) -- The Federal Reserve said Wednesday it appears that the U.S. economy has halted the longest period of decline since the Great Depression, although it cautioned that economic activity is likely to remain weak in the near term.

The central bank left its key overnight interest rate at 0% to 0.25% range, as expected. Its statement at the conclusion of its two-day meeting said "economic activity is leveling out."

That is the Fed's most bullish assessment of the economy in more than a year, and suggests that a recovery may have started.

It said it still expects "inflation will remain subdued for some time" and said that it expects rates to remain near zero percent "for an extended period."

The Fed cut interest rates to the record low range at its December meeting in an effort to spur the struggling U.S. economy at that time.

It also pumped about $1 trillion of cash into the economy during the last year through a number of extraordinary programs, including the purchase of Treasurys and mortgage-backed securities, as well as new programs to get banks and other lenders to extend credit to consumers.

The Fed statement said it believes those actions, along with the stimulus packages passed by Congress "will contribute to a gradual resumption of sustainable economic growth."

<SNIP>

http://money.cnn.com/2009/08/12/news/economy/fed_decision/index.htm?postversion=2009081214

[Craftsman]

1. No new decent paying jobs = no recovery.

Show me the jobs.

[jefferson_dem]

2. I hear your concern...but this IS progress.

Jobs soon...though not soon enough.

[Craftsman]

8. Talk from talking heads is cheap

but it does not feed my kids.

[grantcart]

5. jobs are a lagging indicator. Employers are going to extend overtime

and use other means until they are convinced that there is a real recovery.


But for the person who is looking for work it is still a depression.


Time to get the HC bill pass and start working on the green jobs with a new energy bill.

[uponit7771]

11. Continuing claims are not a lagging indicator just the U3 numbers

[damonm]

6. Econ 101:

Jobs are ALWAYS the last part of a recovery - it sucks, but there it is.

[WI_DEM]

13. it has to start some place, unfortunately the job market is usually the last to

begin coming back.

[debbierlus]

17. And, what will these jobs be? Where are they coming from?

I would be fascinated to know.

[ChimpersMcSmirkers]

19. LOLz. You're right, the economy will never create any more jobs.

You should take a break from the nets. You're doing it wrong.

[high density]

22. Drivers for CEOs in their Bentleys

Janitors to clean up the ivory towers
Servants
Housekeepers

There's a bright future ahead for us in post-offshoring America!

[scheming daemons]

3. Framing is everything... "Obama Recovery" ends "Bush Recession"....

That's the frame.

[Parker CA]

7. I love it. Clean, simple, and 100% accurate. If this is your own suggestion, great job, Scheming!!

[grantcart]

4. now just work on jobs jobs jobs

[bvar22]

9. Yep!

No Wall Street Bankers in the unemployment lines, and the Stock Market has stabilized.
YAY!
:party:

[jefferson_dem]

14. Cute sarcasm...

What this country needs is a swift kick in the rump... in the form of a market crash. Damn investers. Right-o!

[janx]

15. I have to say--I'm tired of the Debbie Downer types too.

It really doesn't help during tough times.

[ChimpersMcSmirkers]

20. It's especially painful when it comes from armchair economists.

[janx]

24. YES, it is. n/t

[uponit7771]

10. They'll stop buying treasuries then right? NO!!! Come on Bernanke stop talkin crap...

...if the economy is recovering stop squeezing people out of treasuries then or at the least start funding the middle class by taking down principle payments in houses buy 10% or something.

[Kdillard]

16. I read they were going to stop buying treasuries in October.

http://www.bloomberg.com/apps/news?pid=20601068&sid=aGVqgVC7POF0

[janx]

12. I've been following financial news all day today.

It looks interesting--the stock market especially.

[DrToast]

18. Future talking point

"They were wrong on the economic stimulus package--they said it wouldn't work--and now they're wrong on health care."

[high density]

21. Recovery? But the Bushbots say we're headed in the wrong direction

Say it ain't so, Ben!

[Yavin4]

23. We're Not In A Recovery. We're Just Not Declining.

A true recovery begins when the job creation rate turns from negative to positive. Once jobs are being created, then a true economic recovery can begin as consumers will become more confident spenders.

What truly is happening is that the economy is stabilizing. We're not reading nor hearing about major banks about to fold, 40% drops in the markets, and credit crunches. IOW, we're not looking at an economic depression.

As far as where the new jobs will come from, the more skills and training one has, the more likely that person will find work. Thus, the college educated, post-high school vocational, health care trained, etc., these people will probably get hired first, as unskilled laborers will find the going very, very difficult.

So, my advice to my fellow unemployed brothers and sisters is to use this time to build up your inventory of skills which is what I am doing.