WASHINGTON — The odds surely increased Friday that the Federal Reserve will ride again to the rescue of the faltering economic recovery, making borrowing a little cheaper for a little longer, as it has done repeatedly over the last four years.
But the government’s announcement that employers added only 69,000 workers in May also highlights a less comfortable reality: The economy seems unable to wean itself from dependence on the Fed’s flow of aid. It keeps coming back for more.
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What began as a one-time jolt in 2008, an unprecedented effort to revive economic activity, has become an uncomfortable status quo, an enduring reality in which savers are punished and borrowers rewarded by a permafrost of low interest rates.
And the Fed, acutely uneasy with this new role in the American economy, may now find itself unable to avoid doubling down.
Read the rest at Jobs Report Makes Federal Reserve More Likely to Act – NYTimes.com.