Why we have not anticipated the relatively slow growth. Its important to recognize that what Monetary Policy affects is not the potential rate of growth, long run. Rather, the cyclical part, the deviation of output and employment from its normal level. In predicting the amount of slack in the economy, so to speak, we have done a little better. Our predictions of unemployment, for example, have been better than our predictions of growth and, in particular, one thing has been quite striking is that unemployment we were too pessimistic on unemployment for this year. Unemployment has fallen faster than we anticipated. In that respect, we were too pessimistic rather than optimistic. We will continue to do the best we can. We are looking again to see confirmation of our broader scenario which basically is that we will continue to see progress in the labor market and growth will be sufficient to support that progress and inflation will move back toward target and thats what weve what will det
T is uniform for everyone housing, some get it and some do not. In the case of health care, the very lowest are on medicaid. And then you have the problem of cost of insurance. Of whatpart of the cost the Affordable Care act deals with. As long as we have that kind of polarization of income, those costs will increase. Now that we are away from the issue of does the government stay open or not, we will get into the debate about what do we invest in . A National Institute of health, reform of how the money is going into food stamps . It seems like we will see a shift in the debate and how we are focusing our attention. Let me raise another issue. I think it is complicated. Less have the committees been doing their work. When they do do their work, they are overruled by central leadership. Projectittees produce a product and then they get vetoed by leadership. My observation is that it is not nearly leadership is not nearly as smart as they think they are. [laughter] this issue goes beyon
That. Not distracted. Thats what i need to hear more than anything else. When i go out to talk to the airmen, i dont say how do we weapon or a better airplane. I get questions about Retirement Plan and sequestration. Its all of the details of money. I dont want them to worry about that. Well do all we can to take care of them in that regard. The nation is not going to let in those ways. Well come to agreements that make sense over time. On theed to keep focused job. Because theyre incredibly good at that. Yeah, the thank you all and happy holidays. Chief says. The theres been a lot of variables paying out over the course of the year. A number are still left to play out that are bigger than that. Pledge to the airmen that i see around the air forces, we decisions that we can as quickly as we can, as we can to gety as the air force back to new normal in and out of uniform could focus on the osition to get past the decisions we shouldnt have to deal with that have been voiced of the budge
Im Carl Quintanilla live at the New York Stock Exchange and cramer and faber are at the hotel in new york city where you heard secretary jack lew saying he will speed up implementation of dodd frank and hoping to have key elements in place this year, and meanwhile, the fed chairman about to testify on the capitol hill about the economy and saying that the bond tapering will begin this year, but not on the preset course. News from bernanke sending the 10year to twoweek lows and the futures are not moving a whole lot in ooeither direction, and m and david, the markets had to absorb a lot of information in a short period of time, and couple in the bank of america earnings and yahoo last night and a lot to talk about today. Tremendous amount, and one of the things that i want to point out here definitely is that i dont think that bernanke was trying to make any news. I literally think that he is saying to stay the course, and the 10year did not do anything, and the futures ticked up, but i
Highrisk countries like spain or portugal, should they receive the same risk weight. The extraordinarily careful look back over the greatly ballooned bubble and subsequent bust that was developed as a result of housing policy and law of the actions taken. Title two of the path act has several provisions meant to allow fha to play that countercyclical. Legal obviously is to really expand eligibility. Which you agree to play an expanded role in times of crisis will help ensure continued access to the mortgage learned from the great majority of borrowers regardless of conditions. I not advocating as sufficient land but not pointing out that we need something to think about the situation with as a backdrop. I have to sleep never started this proposal. That we will we have the government provide a backstop. We will grow to be in consultation. Certainly. The chair recognizes the journal of vortexes. Thank you, mr. Chairman. Thank you, mr. Bernanke, for appearing again. I trust that this woul