Fed is in the midst of its greatest monetary expansion in U.S. history

Posted: February 15, 2014 in Economy, Politics
Tags: , , , ,

I’m not trying to suggest a “dooms-day” scenario will materialize. However, the longer the Fed continues to pump up the economy, the harder it will be to return to normal. The Fed is paying interest on bank reserves for one reason, to keep the money in reserve and out of the economy. If so, why would the Fed continue adding $55 billion per month? As I said, it is purely psychological. After all, people will spend more if they actually are richer or if they believe they are richer. In this case, it seems to be the latter.(Link)

LinkWookieepedia: Link was a MC80a Star Cruiser belonging to the Rebel Alliance.

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