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CHICAGO (Reuters) ? Signs the recovery is gaining strength suggest the Federal Reserve may not need to buy any more bonds to spur growth, a top policymaker said on Saturday.
"I don't think it's very likely right now because the tone of the data has been pretty strong" through the end of 2011 and up to now, St. Louis Fed President James Bullard told reporters after a speech at an economics conference. "We can probably wait and see for now."
The Federal Reserve cut benchmark rates to near zero more than three years ago and has bought $2.3 trillion in bonds to boost growth.
While the Fed has left the door open to further accommodation, the U.S. economy has shown signs of accelerating growth in recent months, leaving many to wonder whether the central bank needs to do any more.
Adding to a sense of pickup, the government said on Friday that employers added 200,000 jobs in December and the unemployment rate eased to 8.5 percent, near a three-year low.
Bullard's comments show a Fed still divided over the need for more accommodation to ensure a soft recovery does not dissipate or wilt due to an outside shock such as an intensification of the European debt crisis. Several Fed officials have urged another round of buying mortgage-backed securities to shore up the depressed housing market, including Boston Fed President Eric Rosengren in a speech on Friday.
INFLATION TARGET IN VIEW
Foreshadowing a development expected at the Fed's meeting later this month, Bullard said that the Fed's adopting of an explicit inflation target would reassure markets that the central bank will under no circumstances tolerate high inflation to get the economy back on its feet.
"If you don't name an inflation target, what you're doing is keeping the possibility of very high inflation in your pocket, which you might take out at an appropriate time," he said.
"I think we want to take that possibility off the table," he added.
Having an explicit inflation target would permit the Fed to take further action to stimulate growth, if it needed to, without losing its inflation-fighting credibility, he said.
The St. Louis Fed President, who is not a voter on the Fed this year, said reasonably strong holiday sales and labor market gains point to an improving economy at least for the next six months.
"Now, you do have this risk out there from Europe, but still I think the best forecast for the U.S. is that the momentum will continue into the first half of 2012," he said.
Federal Reserve Governor Sarah Bloom Raskin said in a speech in Washington that the Fed must impose monetary penalties on banks over mortgage servicing problems, but did not comment on the outlook for the economy or monetary policy.
(Reporting By Mark Felsenthal; Additional reporting by Dave Clarke in Washington; Editing by Andrea Ricci)
(This story, in the sixth paragrph, corrects to say several Fed officials have urged more bond buying, instead of saying that three Fed officials on Friday called for more bond buying.)
Source: http://us.rd.yahoo.com/dailynews/rss/economy/*http%3A//news.yahoo.com/s/nm/20120108/bs_nm/us_usa_fed
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BEDFORD, N.H. ? It?s an issue that has dogged presidential candidate Jon Huntsman since he first got into the ?race: How can he be the best-suited Republican to run against President Barack Obama after working in the Obama administration as ambassador to China?
But on Sunday, Huntsman turned the tables back on GOP rival Mitt Romney, the former Massachusetts governor who revived the topic during one of this weekend?s debates. (RELATED: Full coverage of Jon Huntsman)
?I?m sorry, governor, you were, the last two years, implementing the policies of this administration in China,? Romney said to Huntsman on Saturday night. ?The rest of us on this stage were doing our best to get Republicans elected across the country and stop the policies of this president from being put forward.?
Without naming the former Massachusetts governor, Huntsman told the dozens of guests at a house party on Sunday that ?I had another presidential candidate last night who called into question my service.?
?I say where have we come as people? What about putting your country first for heavens sake? He?s got signs around this state saying, ?Believe in America.? You want to believe in America, you?ve got to serve America for heaven?s sake.
?And service isn?t limited to only one political party,? Huntsman added. ?We?ve all got to pull together.?
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Inhabitat's Week in Green: 2012 Detroit Auto Show, 3D-printed geometric kite and the world's largest battery originally appeared on Engadget on Sun, 08 Jan 2012 20:30:00 EDT. Please see our terms for use of feeds.
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For the first time, the polio virus has disappeared from the country for 12 months, but it could still be re-imported from neighboring nations that continue to fight the devastating disease
By Helen Branswell ?| January 9, 2012?|
A boy in Firozabad, Uttar Pradesh, India, shows his finger, painted to indicate he has just been vaccinated. Financial support for work that included this photograph came from the Pulitzer Center for Crisis Reporting.
Image: Helen Branswell
In the mid-2000s, when scientists questioned whether the campaign to rid the world of polio could succeed, skeptics pointed to a problem that some called PAIN.
That stood for Pakistan, Afghanistan, India and Nigeria?the four countries that were stubbornly standing in the way of success. The four had never managed to stop the spread of polioviruses within their borders and continued to send viruses, like embers off a fire, to re-ignite outbreaks in places that had previously halted transmission.
Now it appears someone's going to need to craft a new mnemonic.
India, which once seemed likely to be the last country on Earth to rid itself of polio, appears to have succeeded ahead of Pakistan, Afghanistan and Nigeria in besting the crippling viruses. The last child paralyzed by polio in India got sick on January 13, 2011, and surveillance for wild polioviruses in sewage has not turned up the pathogen in more than a year.
If India produces 12 straight months of polio-free surveillance data, it will be removed from the list of countries where polio is considered endemic, leaving only the other three. A statement hailing that likely eventuality will be issued by the Global Polio Eradication Initiative on the one-year anniversary of the last case later this week. But with the time it takes to process pending laboratory tests, it may be mid-February before there is official word.
Still, there is the sense that India is on the threshold of a momentous achievement, one gained against tremendous odds.
"This is huge for us. It has taken more than a decade and tens of millions of health-workers, managers and a lot of mobilization to get to this point," says Hamid Jafari, project manager for the World Health Organization's National Polio Surveillance Project, based in New Delhi.
After more than a decade battling the virus, and heartbreaking years of seeing the numbers of paralytic cases dip tantalizingly low, only to rebound, some scientists doubted polio could be stopped in India. It was commonly observed that the eradication program had two distinct problems: In Nigeria, where some Muslim parents refused to vaccinate their kids on religious grounds, and in conflict-torn countries like Afghanistan, where safe access is a challenge, the programs were failing to vaccinate all children. In India, however, the failure was on the part of the vaccine.
Where children are well nourished and healthy, three doses of oral polio vaccine will do the trick. But malnourished children who live where sanitation is poor and diarrhea is a fact of daily life cannot mount a protective immune response so easily. In India children who had been vaccinated eight, 10 or more times would sometimes still fall prey to polio.
New vaccines that targeted first one and later two strains of polio, rather than all three, were introduced and began to make real inroads. But the country still faced enormous challenges. In India locating and vaccinating all the vulnerable children is a gargantuan task. In the two poor northern states where polio made its last stand?Uttar Pradesh and Bihar?more than half a million babies are born every month. On the twice-annual national vaccination days, 2.3 million vaccinators visit 209 million households.
"We have to get to these children, these newborns, with vaccine faster than the wild virus can get to them. It's a race against virus," Jafari explains.
In addition to introducing more effective vaccine, India got better at finding high-risk children, homing in on families that move about the country looking for seasonal work. Transit points?train stations, bus depots, busy highway intersections?are used as distribution centers during vaccination campaigns. And special efforts are made to locate and map where migrant families set up camps, to ensure their children are not missed when vaccination teams make their rounds.
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Continue reading Sky to introduce 'augmented' TV viewing with zeebox companion app
Sky to introduce 'augmented' TV viewing with zeebox companion app originally appeared on Engadget on Tue, 10 Jan 2012 07:42:00 EDT. Please see our terms for use of feeds.
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