Difference between revisions of "Quantitative Easing"
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For example, in response to a weakening [[economy]] likely due to [[liberal]] policies by the [[Obama Administration]], the Federal Reserved announced on September 13, 2012 that:<ref>http://www.cnbc.com/id/49036260</ref> | For example, in response to a weakening [[economy]] likely due to [[liberal]] policies by the [[Obama Administration]], the Federal Reserved announced on September 13, 2012 that:<ref>http://www.cnbc.com/id/49036260</ref> | ||
| + | {{cquote|The Fed initially disappointed some investors on Thursday when it said it would buy $40 billion of mortgage-backed securities each month. That is far less than the $75 billion a month it bought in its second round of bond-buying, or the more than $100 billion monthly tab for its first round. | ||
| − | + | '''''But this time, the Fed has promised that "if the outlook for the labor market does not improve substantially," it won't stop buying and could ramp up its spending further'''''.}} | |
| − | + | There is no free lunch, so "quantitative easing" is always at someone's expense. But because of the secrecy which continues to cloak the Federal Reserve, it is not always easy determining who is paying a specific bill. | |
== References == | == References == | ||
Revision as of 20:14, September 14, 2012
Quantitative Easing is the controversial use of gimmicks by the Federal Reserve to try to encourage economic growth during a recession. It consists of tricks like buying up bonds in an indirect effort to lower interest rates.
For example, in response to a weakening economy likely due to liberal policies by the Obama Administration, the Federal Reserved announced on September 13, 2012 that:[1]
| “ | The Fed initially disappointed some investors on Thursday when it said it would buy $40 billion of mortgage-backed securities each month. That is far less than the $75 billion a month it bought in its second round of bond-buying, or the more than $100 billion monthly tab for its first round.
But this time, the Fed has promised that "if the outlook for the labor market does not improve substantially," it won't stop buying and could ramp up its spending further. |
” |
There is no free lunch, so "quantitative easing" is always at someone's expense. But because of the secrecy which continues to cloak the Federal Reserve, it is not always easy determining who is paying a specific bill.