Wow, who would have guessed? The "temporary" argument really doesn't hold water here and throwing more free money at Wall Street is likely to only make it worse. But hey, we've known that the Fed has had problems with understanding the middle class squeeze for a while. The Fed is once again only there to support Wall Street.
The Federal Reserve on Wednesday said the pace of U.S. economic recovery was proceeding more slowly than it had expected though it was primarily because of temporary factors.
The Fed's policysetting committee said it will maintain interest rates at exceptionally low levels for an extended period. It said inflation has picked up because of higher commodity prices and supply chain disruptions but longer-term inflation expectations remain stable.
"The slower pace of recovery reflects in part factors that are likely to be temporary, including the damping effect of higher food and energy prices on consumer purchasing power and spending as well as supply-chain dusruptions associated with the tragic events in Japan," the Fed said in a statement at the conclusion of a two-day meeting.
