Federal Reserve Plans to Pull-Up on Stimulus Program

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Federal Reserve

Scribe: Samiel Otis

Email: samuel@thethinkering.com ►

 

In an effort to control the influx of cheap money the Federal Reserve must is ending its most significant stimulus program, the quantitative easing program. 

The program was put in place to as an effort to puff up the economy during difficult times.  The U.S. economy has been slowly making a comeback, a major indicator of the health of the economy is unemployment with is down.  The bank’s announcement was severe for emerging markets, which benefitted from the quantitative easing program as investors looked for better returns than were available in the U.S.

The Federal Reserve is expected to indicate how fast it will reduce the stimulus program.  The preserve stability in international markets, it must clearly state by how much it will reduce the program, now worth $85 billion a month, and over what time according to a recent report.

While many investors rejoiced that former Treasury Secretary Larry Summers withdrew his name from consideration to be the next Federal Reserve chairman, possible candidates ‘names are being mentioned in investment and political circles.

Janet Yellen tops the list along with Donald Kohn as the potential new Federal Reserve Chief.

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