Filed under: Economic Data, Federal Reserve, Financial Crisis
Almost everybody believes the Federal Reserve is about to implement another round of stimulus. And the reasons cited in favor of such a move are many. One argument put forth is a fear of deflation, as reported in the article by CNNMoney/Fortune. Well, with GDP at 2% for the last quarter, the economy is slow, but it is not sinking into deflation.
Then what is the Fed up to? Why do another round of stimulus? Let’s try this argument. The plans are to print perhaps another trillion dollars by buying Treasuries. When the Fed buys Treasuries, the money goes directly to the bankers. The $64,000 question is why give all this money to the bankers?
Continue reading Why Is the Fed Doing Another Round of Stimulus?
Why Is the Fed Doing Another Round of Stimulus? originally appeared on BloggingStocks on Mon, 01 Nov 2010 10:30:00 EST. Please see our terms for use of feeds.
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Here’s a shocker!. Chicago Fed President Charles Evans claims that the U.S. is an a bona fide liquidity trap! His remarks were given in a speech to the Boston Fed and reported in the 
The U.S. Federal Reserve is in a quandary about how to explain its anticipated quantitative easing stimulus, dubbed QE2. Officials worry that an added stimulus will create unwanted inflation.
For the 2010 fiscal year ending September 30, the Congressional Budget Office reported that the deficit is just below $1.3 trillion, 
