The Federal Reserve, which Bernanke heads as chairman, said it wouldn’t raise the benchmark federal funds interest rate until unemployment falls to at least 6.5 percent from the current 7.7 percent.
Previously, the Fed said it was likely to wait until mid-2015 before raising the Fed funds rate, which currently ranges from zero to 0.25 percent. The shift doesn’t change the timing of when officials believe the economy will be strong enough to grow on its own, but it does tie monetary policy directly to a specific target, even if there is wiggle room for the Fed to think on its feet.
With prices steady even with low interest rates, Bernanke is focused on the job front.
“About 5 million people — more than 40 percent of the unemployed — have been without a job for six months or more, and millions more who say they would like full-time work have been able to find only part-time employment or have stopped looking entirely,” Bernanke said at a press conference. “The conditions now prevailing in the job market represent an enormous waste of human and economic potential.”
Bernanke’s position gives him great sway. And even though Forbes named him the sixth most powerful person in the world this month, the Fed chief said he could only do so much.
Already the Fed is doing more. The central bank said Wednesday it would pump more money into the economy by buying $45 billion in Treasury bonds each month, replacing a program that previously swapped out short-term debt for longer-term obligations.
“Monetary policy has its limits,” Bernanke said. “Only the private and public sectors working together can get the U.S. economy fully back on track.”
Step one is avoiding the fiscal cliff — a term Bernanke coined to describe the potentially toxic combination of automatic tax hikes and spending cuts slated to take effect next month. Bernanke said lawmakers need to both address the issue in a way that does not hurt the recovery and also lays the foundation for a long-term fix.
Although stocks initially gained on the new support for the economy, markets slipped back as investors continued to fret over the fiscal cliff.
Shares in the S&P Retailing Industry Group gained just 0.1 percent, or 0.86 points, to 656.65, as the Dow Jones Industrial Average gave up earlier gains and fell 2.99 points to 13,245.45.
Among the day’s decliners were G-III Apparel Group Ltd., down 6.3 percent to $34.03; Quiksilver Inc., 4.8 percent to $4.01, and Wal-Mart Stores Inc., 2.8 percent to $68.94.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)