Economists: Hey Fed, Don't Do Anything Else

A survey of economists have said that the Federal Reserve should let the economy heal itself, and no additional stimulus is needed, or warranted. If the Fed tried to do additional stimulus, it could actually do more harm than good. 36 of the 38 economists who were surveyed said that any additional efforts by the Fed would not provide much benefit, and if there was additional easing measures, higher inflation and financial markets could be thrown in turmoil. John Silvia, chief economist at Wells Fargo WFC said the economy just needs time. "There are no magic bullets," Silvia says. "A lot of this stuff just really needs to be dealt with. It's not a question of stimulus." In the survey conducted by the AP, the economists expect a quarterly growth rate of 2.3% this quarter, far sharper than the 3.2% it was earlier projected to grow at. This comes as economic numbers are slowing recently, with just 54,000 jobs created in May. Over 200,000 jobs were created in the January-March period. The economists have also cut their forecast for the full year, saying it will expand at a 2.6% clip, down from 2.9%.