On Thursday, the Federal Reserve announced that it would begin another round of asset purchases. This is the first time that the Federal Reserve has pursued such an accommodating monetary policy, and is seen by some economists as a shift by the Federal Open Market Committee (FOMC).
In a letter to House Oversight and Government Reform Committee Chairman Darrell Issa, Federal Reserve Chairman Ben Bernanke said that there was room for the country’s central bank to take more action in order to ease economic strains.
We’ve all seen the headlines—weak economic growth, high unemployment, declining consumer confidence, etc. These concerns preoccupy most of our thoughts—our nation’s leaders included. But, what kind of new policy is needed to address these concerns?