In most of these situations, the war ended quickly, spending was reduced, deficits disappeared, and the Treasury no longer had to print money or pressure the Fed to help with deficit financing.
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Mounting inflation will also put pressure on Fed Chairman Ben Bernanke and his program of quantitative easing, dubbed QE2, devised to spark inflationary expectations. (Read Distressed Debt Investors Prefer Real Estate in 2011).
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There has been incredible political pressure on the Fed to keep interest rate low.
Congress runs up debt and that puts a lot of political pressure on the Fed.
This will put additional upward pressure on interest rates, and more political pressure on the Fed to monetize the debt.
And unfortunately, many other conservatives and libertarians seem to agree with him, exerting significant pressure on the Fed for tighter money.
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"Eventually after being pressure washed and fed cake (blow the diet) I was able to continue, " she said in her blog.
Yet pressure on the Fed to cease its expansionary actions has been intense, and led by a Republican Party increasingly driven by boomer preferences.
"The U.S. economy may be slowing down some, but that has the added benefit of reducing the pressure on the Fed to raise interest rates some more, " he says.
This air has its temperature and pressure corrected before being fed into the cabin.
So now the pressure is back on the Fed to act at its meeting next week.
According to Pfotenhauer, wide authority over the entire market by the Fed would ease the pressure on Congress to legislate, particularly on the Senate side.
"Dealers in the eastern part of the District are apprehensive about losing technicians to the shale gas industry, which may put upward pressure on wages, " the Fed said.
The Fed will thus feel less pressure to lower rates and pump in more liquidity.
Adding to the pressure was a WSJ report that the Fed may push for higher capital requirements from banks than required by law.
On the one hand, the Fed has to be feeling pressure relative to their ever-expanding balance sheet that has swelled to disturbing levels.
Rejecting pressure from the U.S. Fed to cut interest rates, one ECB official said there is too much money in circulation, another sign that Europe is seeking its own way out of what it sees as a crisis born in the U.S.A. Sylvia Poggioli, NPR News, Brussels.
But no, in the interest of full transparency, we had Bernanke warning about how the Fed expected still more negative pressure ahead from the housing collapse, worsening labor markets, a credit crunch that may have still more shoes to drop, and revealing that the Fed was also beginning to worry about the potential for rising inflation.
Basically, the Fed did not maintain adequate water pressure in our economic plumbing while investors were busy constructing bigger pipes.
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He finds that, taken together, these special factors are enough to explain why the increase in wage pressure due to tight labour markets has not fed through to prices.
Recent inflation figures suggest that there is still little upward price pressure in America, despite the implication of the Fed's rate increase.
The only place where the Fed can locate a pulse of inflationary pressure is in wages and salaries for skills-based workers, particularly in technology.
That said, there is a legitimate concern that when the time comes to raise interest rates, the Fed may hold back because of political pressure or fear of fracturing financial markets.
When pressurized water is fed over such an intersection, the pressure pushes down the thin layer of rubber, separating it from the fluid below, and it clamps shut the fluid channel below, like stepping on a hose.
Fed Chairman Ben Bernanke has come under increasing pressure to address inflationary concerns, as food and energy costs have gone up steadily in the U.S. (Read Firms Wave Red Flag Of Inflation).
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That kind of takes some downward pressure away from this afternoon's anticipated release from the Fed, '' Fort Pitt's Caughey said.
However, after the 1996 capital gains tax cut got our economic pipe fitters working overtime, the Fed stood idly by while the our monetary water pressure fell.
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Congress will be increasingly receptive to calls from the left to take the pressure off homeowners, particularly now that Americans have seen massive Fed action to shore up Wall Street.
And by putting downward pressure on long-term bond yields, it may require the Fed to raise short-term interest rates more aggressively to cool down the economy.
Under the policies, the Federal Reserve has purchased large volumes of financial assets, and the increase in demand for these assets from the Fed has lowered long-term interest rates and put upward pressure on the prices of stocks and bonds.
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