Federal Reserve “Essentially Printing Money”

Yeah, no shit: Fed to Buy Treasurys, Expand Balance Sheet: With rates near zero, the Fed is now essentially printing money to increase the supply of credit in the economy. The rest of the article is worth reading as well, but that’s the money quote. Inflation, anyone?

Federal Reserve to Make Up For Lowering Interest Rates by Lowering Interest Rates

One of the principle reasons for the financial crisis is the Fed’s past efforts to inflate the money supply by lowering interest rates below what the market would normally charge. This pumped literally trillions of dollars into the economy, which necessarily causes such things as the housing bubble–all that fake money has to go somewhere. As economist […]