Fed to inject $600b in U.S. economy - Macleans.ca

Fed to inject $600b in U.S. economy

Critics say last-ditch effort could drive dollar down further


The Federal Reserve said it will inject another $600bn into the struggling U.S. economy in a new effort to shore up the country’s economic growth.  The quantitative easing operation, nicknamed ‘QE2,’ will see the Fed buy longer-term Treasury securities and is being regarded as “one of the most significant decisions the Fed has made in years,” according to the Financial Times. The measure is meant to drive down long-term investment rates and could be one of the last options available to the Fed to try to stimulate the economy through monetary policy, since short-term interest rates in the U.S. are already hovering around zero. Some economists, though, fear the intervention could cause the dollar to drop further on international markets.

Financial Times

Filed under:

Fed to inject $600b in U.S. economy

  1. Debauching the currencys is alwasy bullish. For gold that is.

  2. Presumably, the American gov't is trying to stimulate economic growth so that Americans have more employment opportunities. One wonders, then, why their senior politicians, like ours, are ignoring the plague of mass immigration, both legal and illegal which they know perfectly well is driving down wages and making it harder for citizens to find work.

  3. Some economist fear it will lower the USD…

    Of course it will! That's the point. I don't agree with the point, but there isn't any hiding the fact.

  4. History repeats itself, the Weimar Republic took similar actions. The worst US government in history has two years to complete its agenda, hopefully that does not give them enough time to completely destroy the economy. Americans are at least starting to wake up to the disaster they are facing because of their government.

  5. My God! Another 600 billion added to their debt. It will not only lower the USD but it will take a long time to dig them out from this mounting debts. In the future, big portion of US budgets will be earmarked for paying the interest payment alone, there will be little else left for other necessary programs.