his week, the Federal Reserve announced a new round of monetary stimulus to jumpstart the economy, pledging to purchase tens of billions of dollars worth of mortgage-backed securities from banks and other entities every month until the labor market finally shows some improvement. (Read a primer on the plan here.) It is the third time since 2008 that the central bank has used its unlimited source of cash to flood the economy with money, prompting Mitt Romney's campaign to describe the move as "further confirmation that President Obama's policies have not worked." Is the Fed's stimulus proof that Obama has failed?
Yes. Obama's deficiency could not be more evident: The Fed's actions are the latest "evidence that Obamanomics has failed this country miserably," says Charles Gasparino at The New York Post. After all these years, what did we get from Obama's stimulus? "Economic growth below 2 percent, record numbers of people dropping out of the workforce, and falling wages." The country is in danger of "falling back into severe recession because of a president with no clue about growing the economy," and that's why Fed had to step in "to stave off economic disaster."
"Bernanke's bad news"
No. The Fed is just preparing for future volatility: The economy isn't in the best shape, but it's not so bad that it needs additional support from the Fed, says Ambrose Evans-Pritchard at Britain's The Telegraph. Instead, the Fed's "extra juice is insurance against a clutch of nasty risks ahead," including a "deepening slump in Europe," the possibility of a Chinese recession, and a "looming 'fiscal cliff' in the U.S.," which could push the country back into recession if Congress fails to prevent a slate of automatic spending cuts and tax hikes at year's end.
"Era of 'jobs-targeting' begins as Fed launches QE3"
Blame Congress, not Obama: "If any politician dares to complain about the Fed — and believe me they will — I have these two words of advice: Zip it!" says Paul R. La Monica at CNN Money. It's "painfully clear" that the Fed is "worried about the possibility that lawmakers will muck things up later this year by doing what they do best: Nothing." There are "legitimate fears" that Congress will plunge us off the fiscal cliff, and there's no chance the divided body will do anything to help the unemployed. The Fed "has to provide more stimulus for the economy because Congress seems unwilling to do so. Sad."
"Fed acted because Congress is lame"
- The indignity of canine bath time
- What to expect when you're expecting (100 years ago)
- Watch The Daily Show definitively prove that corporations are not people
- No, Obama doesn't have to fire everybody in the White House
- Is it possible to live forever?
- How to make the perfect hot chocolate
- 11 languages spoken by 11 people or fewer
- How America's unions can reinvent themselves in the new economy
- Remembering Nelson Mandela: A tribute in photos and prose
- Why income inequality has become the Democratic Party's top issue
Subscribe to the Week