How screwed are we? Very:
The Federal Reserve opted Wednesday not to take significant new steps to hasten the economic recovery, further angering critics who believe it has failed to adhere to its dual mandate to keep unemployment low while maintaining price stability.
But in response to questions from skeptical media, Fed Chairman Ben Bernanke reminded reporters that the Fed isn’t the only game in town, and practically begged Congress to take affirmative steps to boost recovery.
Bernanke cited “Fiscal restraint at the federal state and local levels,” as a key head wind threatening the recovery.
“Monetary policy is not a panacea,” he implored. “Monetary policy by itself is not going to solve our economic problems. We welcome help and support from any other part of the government, from other economic policy makers. Collaboration would be great.”
Yeah, fat chance that Congress will do anything. The official stated position of the GOP is we have too many policemen, firemen, and teachers, and what we really need to do is cut back on food stamps while giving the Koch brothers some more tax cuts.