In it, but not of it. TPM DC

Bernanke: Spending Cuts Harming The Economy, May Lead To Further Fed Stimulus

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Newscom

Bernanke explained that further quantitative easing could have a substantial impact on employment, and even argued that earlier rounds of large-scale asset purchases led to the creation of two million more private sector jobs than the economy would've produced on its own.

The unusually explicit endorsement of past -- and potentially future -- fed action has led experts to conclude that the Fed's Open Market Committee will resort to further quantitative easing when it meets two weeks from now. But fed critics see this as evidence of failure to act sooner.

"So in September the Fed is going to take actions that were already overdue in July, and necessary partly to offset earlier inaction," tweeted University of Michigan economist Justin Wolfers. "#woohoo."