Sunday, December 23, 2012

Bernanke Loosens Up? What does that mean?

Here is the latest from Dr. Frank Shostak on Ben Bernanke and his stance on current moves by the Federal Reserve regarding monetary policy.  The article is titled, "Bernanke Loosens Up". A key excerpt:

"On Wednesday December 12, 2012 Fed policy makers announced that they will boost their main stimulus tool by adding $45 billion of monthly Treasury purchases to an existing program to buy $40 billion of mortgage debt a month.

This decision is likely to boost the Fed’s balance sheet from the present $2.86 trillion to $4 trillion by the end of next year. Policy makers also announced that an almost zero interest rate policy will stay intact as long as the unemployment rate is above 6.5% and the rate of inflation doesn’t exceed the 2.5% figure."

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