Editorial: The Fed can do only so much
Federal Reserve Board Chairman Ben Bernanke speaks during a news conference in Washington. (June 20, 2012) Credit: AP
$267 billion -- That's how much more the Federal Reserve plans to spend buying long-term bonds as part of Operation Twist, its effort to drive down longer-term interest rates. If only Fed Chairman Ben Bernanke's plan could have the impact that Chubby Checker's dance did way back when. Unfortunately, the Fed program can only help a little, and more aggressive Fed moves, possible later this year, aren't much more promimsing. As Bernanke himself has said, boosting economic growth will require action by the government, not just the central bank.
