On January 13, 2010 the Federal Reserve escalated its campaign to stabilize the economy, saying it would flood the financial system with …
Answer by Ryan Cantin:
Peter is right. Also, Washington has provided ZERO assistance with fiscal policy, essentially leaving everything up to the Fed. Bernanke has stated his displeasure with fiscal policy many times, leaving the Federal Reserve the only game in town.
In truth we will not be able to truly examine the benefits and consequences of 0 percent interest rates and QE until it is unwound. The very mention of the beginning of this process has led treasury rates up 100 basis points, potentially derailing one of the stronger aspects of this economy, Real Estate.