This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Fed Official Says Decision on More Stimulus is 'Close Call': Report

JACKSON HOLE, Wyo. ( TheStreet) -- A voting member of the Federal Reserve's policy-setting committee expressed doubt Saturday about the effectiveness of further monetary stimulus, according to a published media report.

"It's a close call" on whether the central bank should provide further stimulus to the economy, said Federal Reserve Bank of Atlanta President Dennis Lockhart, according to a report posted on The Wall Street Journal's Web site.

Lockhart reportedly said that current uncertainty over the nation's fiscal policy -- including the so-called "fiscal cliff" -- would mute the impact of further monetary stimulus. The bank official added that the European debt crisis was another factor creating economic uncertainty.

"There really is a lot to be solved on the fiscal side to create the conditions, arguably, in which further monetary action could really boost the economy," Lockhart was quoted saying.

The fiscal cliff refers to the federal tax increases and spending cuts that are set to kick in at year's end unless lawmakers -- fiercely divided along partisan lines -- can come to an agreement on fiscal policy. Economists fear the combination of tax increases and spending cuts will hurt an already-fragile economy.

> > Bull or Bear? Vote in Our Poll

Lockhart was speaking on the sidelines of the Kansas City Fed's annual research conference in Jackson, Hole, Wyo., the report said.

"I'm increasingly of the view that we are on a track that you would, to simplify it, would say is about a 2% growth track with fluctuating job growth. But overall, not a strong enough pace to bring down unemployment to anything close to a notion of full employment in a reasonable time," Mr. Lockhart said, according to the Journal.

Lockhart said the key question was whether additional monetary stimulus would change that trend, according to the report. "That's a very tough question. I am not highly confident in the ability of simply monetary action to jump-shift the economy onto a different track," Mr. Lockhart was quoted saying.

Lockhart's came one day after a speech by Fed Chairman Ben Bernanke was received bullishly by the stock market.

Many on Wall Street interpreted Bernanke's speech to mean that further monetary stimulus would be forthcoming.

But Lockhart cautioned against such an interpretation, saying Bernanke's speech was an attempt to "take stock" of the central bank's recent stimulus efforts, according to the Wall Street Journal report.
This article was written by a staff member of TheStreet.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $122.99 -0.32%
FB $96.99 1.78%
GOOG $631.93 0.63%
TSLA $263.82 -0.38%
YHOO $37.67 -0.13%

Markets

Chart of I:DJI
DOW 17,751.39 +121.12 0.69%
S&P 500 2,108.57 +15.32 0.73%
NASDAQ 5,111.7330 +22.5270 0.44%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs