The announcement from the Federal Reserve on Wednesday that it would continue pumping new money into the economy “is a major admission by Bernanke that things aren’t good,” Former Rep. Ron Paul told MSNBC’s “Morning Joe” on Thursday.
“He’s literally saying, ‘We’re in bad shape.’”
The stock market soared on the unexpected news that the Federal Reserve’s “quantitative easing” program will continue, even though Bernanke hinted earlier this year that the stimulus program would begin to wind down. (Under quantitative easing policies, the Fed creates new money which is used to buy government bonds and other assets from banks, thereby boosting available capital.)
“I think it was a very, very bad announcement yesterday that the economy is a lot worse off, and I think in time that will prove to be the case,” Paul said.