Fed Talks Tough

A report from the Wall Street Journal online relates a tough tone from Federal Reserve Chairman, Ben Benanke, at a meeting of economic policy makers today in Jackson Hole, Wyoming. He said “policy options are available to provide additional stimulus” should they be needed. This comes as the US Commerce Department reports a much lower growth rate in the GDP than previously predicted.

For those watching the financial markets closely, it may mean even more drastic steps will be taken legislatively in an attempt to reverse what has many Democrats in the Obama administration worried will turn into an even more dismal view of the leadership being provided by Capitol Hill.

JACKSON HOLE, Wyo.—Federal Reserve Chairman Ben Bernanke opened the door to bolder steps by the central bank if the economy continues to falter, amid fresh signs that growth has fizzled in the past few months.

The remarks—the strongest signal yet that the Fed is ready to bolster growth—cheered investors, who bid up U.S. stocks.

Speaking Friday to world monetary policymakers gathered in Wyoming, he said “policy options are available to provide additional stimulus” to the U.S. economy, should it be necessary.

The remarks—the strongest signal yet that the Fed is ready to bolster growth—cheered investors, who bid up U.S. stocks.

Speaking Friday to world monetary policymakers gathered in Wyoming, he said “policy options are available to provide additional stimulus” to the U.S. economy, should it be necessary.

The latest sign of trouble for the economy came Friday as the Commerce Department revised down its estimate for second-quarter growth in gross domestic product. The economy grew only 1.6% in the period, not the 2.4% annual rate previously estimated.