March 19th 2014 Federal Reserve has again shrunk down another 10 billion. This is the third time that the Federal Reserve has done this. In her first open market meeting as the head of the Federal Reserve Janet Yellen has stuck to her promise of continuity, cutting the central banks purchases of assets. The money that the Federal Reserve is called Quantitative Easing The reason behind the shrinking of the amount of money that is flowing out of the Reserve is the economy is showing signs of improvement.
The whole idea of allowing the government paying up of assets was to help stimulate the Post- Recession economy. The practice is called Quantitative Easing, it’s when the government pumps money into the economy to keep interest rates low and allow for growth. The Fed in December of 2013 purchased 85 billion in bonds to help support low interest Rates.
This idea of Quantitative Easing is to help improve the economy. After the 2008 financial crises, many feel that the Fed hasn’t done enough to help with the recovery. With Yellen cutting the amount of money pumped into the economy she hopes to raise interest rates and make the final push to recover from 2008 financial crises.
It's good to see that the government is attempting to stimulate economic growth. Quantitative Easing seems to be an good idea, and one that the government has invested quite a bit of money in, but just how effective has it been?
ReplyDeleteThe effort is good to see but the Fed influence is often what negatively influences the economy in the first place. I think it would be better if the Fed would limit its ties and only assist when really necessary.
ReplyDeleteIt is a good sign that the Federal Reserve is doing this so that the economy can be stimulated.
ReplyDeleteI think that the government has done a pretty good job. Since 2008, the economy has been growing every year. Their quantitative easing idea is working pretty well.
ReplyDeleteThe Federal Reserve needs to keep spending money wisely. I think they have definitely been doing better the past couple years. I hope the government keeps their priorities straight.
ReplyDeleteI'm glad that the federal reserve is doing something productive with their money. It makes me able to sleep at night. I just hope thag they aren't stupid. #ChrisCristie2016
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