The story is in the Fiscal Times. Last week - in 2302 - we discussed monetary policy and the role of the Fed in regulating the macro economy. We especially noted that since it is an executive institution that already has a mandate to act by Congress, it is free from the political constraints common in Congress. That doesn't mean it will always act however.
Here's proof:
Even though the jobless rate is far above that mark, don’t expect any
bold new steps this week. Here are the three main reasons why the Fed
won’t act:
1. The Slow-Boil Euro Crisis
2. Growth has Slowed, not Stopped
3. The Fiscal Cliff Ahead.
We should discuss in class. This adds to our query about whether government can actually work.
