"Fed to weigh pick-me-up for flagging U.S. recovery"

WASHINGTON | Mon Aug 9, 2010 12:48pm EDT

(Reuters) - The Federal Reserve on Tuesday may send a clear signal it is prepared to print more money to support a faltering economic recovery if necessary.

The central bank is widely expected to renew its vow to keep rates near zero for "an extended period" and markets will watch closely for signs officials are growing more concerned the recovery is at risk...

Evidence the already sluggish recovery has lost momentum has shifted discussion at the U.S. central bank from exit strategies to whether the economy needs more backing, which would most likely come in the form of buying more longer-term assets...

FED NOTES GREATER RISKS, VOWS ACTION IF CONDITIONS WORSEN

The Fed cut rates to near zero almost two years ago and has been promising to keep them extraordinarily low for an extended period at every meeting since March 2009.


Almost two years ago, and we're still waiting to see if the economy is gonna recover. Big Ben Bernanke is still waiting. He doesn't seem to understand the meaning of the word urgency.

Look. It's not up to me whether we fix the economy or not. But if we're gonna fix it, the sooner we do it, the better. The longer it takes the more things fall apart, and the harder it is to recover.

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