Economy slows, but Fed holds off on action.. Schoenberger quoted on NBC News
August 1, 2012 1 Comment
The Federal Reserve apparently practices the ancient Taoist principle of “wu wei,” which means taking action by taking no action.
Despite signs that the economy has slowed since the beginning of the year, the nation’s central bank took no new steps Wednesday to rev up business activity, except to leave interest rates unchanged at near zero.
“Information received since the Federal Open Market Committee met in June suggests that economic activity decelerated somewhat over the first half of this year,” the central bank’s policymaking committee said in a statement released at the conclusion of a two-day meeting.
The statement changed the tune the committee had been singing for some time: that the economy had been expanding moderately this year, although growth in employment had slowed.