Federal Reserve holding off on new action… for now

by Nancy Marshall-Genzer

In theory, the Federal Reserve gets some of the best data and advice in the country on the direction of the U.S. and global economies — which is why When Fed Chairman Bernanke speaks his every syllable is parsed with precision. The Fed has ended its two-day meeting and the conclusion is the economy isn’t bad enough to take new action now. The Fed has been urging Congress and the White House to work on policies to stabilize the housing market. Karen Petrou is a managing partner with Federal Financial Analytics. Karen Petrou: It’s stepped outside the marble halls of the central bank and tried to get somebody to do something about housing. She says the Fed has put its credibility on the line in a way she’s never seen before, going beyond just setting interest rates and onto the tricky terrain of policy.

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