The Federal Reserve was formed
to promote sustainable economic growth by: stability of prices to help preserve
the purchasing power of the dollar, moderate long-term interest rates, ensure
high levels of employment, and overall, make sure the U.S. has a sound banking
system and healthy economy. It is clear
that the Fed is not delivering on these objectives today.
Although there have been small
signs of improvement since 2008, the U.S. economy is far from achieving a level
of sustainable growth, and is being held back by a number of concerns. The
dollar has been on a downward trajectory for years; unemployment and
underemployment has become a chronic problem since the financial crisis of
2008; and banks are still fraught with toxic assets with tight lending policies. Also consumer prices are controlled but there
are valid concerns here as the methodology of calculation understates true
inflation. The risk of high inflation,
as more than $2 trillion has been injected into the banks by the Feds, is
becoming more pronounced with each QE announcement. A deeper look is required - Financial Planning
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