Quantitative Easing
[Fed Reserve to
Continue $85 Billion a Month Quantitative
Easing by Wynton Hall] "The Federal Reserve
announced on Wednesday it will continue its
unprecedented $85 billion a month
bond-buying strategy despite earlier
indications it would begin tapering its
controversial quantitative easing policies.
The announcement comes as the Fed has
downgraded its outlook for the U.S. economy.
The Fed now projects that the economy will
grow at an anemic 2% to 2.3%, rather than
its earlier forecast of 2.3% to 2.6% growth.
The Fed's quantitative easing policies have
already pumped $2.8 trillion into the
economy, but a new Reuters poll finds that
73% of Americans do not even know what
quantitative easing means. Quantitative
easing is when the Federal Reserve buys
securities to drive down interest rates and
prop up the economy.
The Dow and S&P 500 surged to record highs
after the Fed's announcement; the Fed's
easy-money policies and suppressed interest
rates give banks free money to invest and
leverage.
“The Fed has been robbing America’s poor and
middle class and essentially underwriting
the wealthy, the big banks and big
business," explains Jonathon Trugman,
writing in the NY Post. "The twisted
maneuvers of grand larceny-like proportions
have underwritten the greatest transfer of
wealth this generation has ever seen.”
Bankrate.com senior financial analyst Greg
McBride said, "The primary goal here is to
push money into riskier assets, whether it's
equities or the housing market."
The Federal Reserve's balance sheet now
stands at an unprecedented $3.6 trillion.
Prior to the recession, the Fed's balance
sheet was less than $1 trillion."
Fed Reserve to Continue $85 Billion a Month
Quantitative Easing
Am 8:5
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Quantitative Easing
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