money supply

5 Ways QE3 Will Affect Your Wallet

Quantitative easing is when the Fed buys securities in the hope of driving down interest rates -- ideally spurring more borrowing and spending. And this time, the Fed says it'll do it until the economy is back on track. But there are side effects to Dr. Bernanke's medicine.

Is Inflation About to Heat Up? Well, It's Complicated

Given an economy gaining steam and a vast expansion in the money supply, it's easy to assume inflation is up next. The causes of inflation, however, are anything but straightforward -- which is something investors need to remember.

Why the Fed's Stimulus Only Boosts Emerging Markets

When QE2 is complete, the Fed's bond purchases will have injected $1.7 trillion in liquidity into the markets since 2008 in an effort to boost corporate investment in new production and new jobs in the U.S. Instead, companies are taking cash raised here and investing it in emerging markets.

Bernanke Defends QE2 Plan to Boost Economy

A day after the the Federal Reserve announced a second round of quantitative easing measures to stimulate the economy, Fed Chairman Ben Bernanke responded to critics of QE2 in a Washington Post op-ed that explained how the bond purchases will work, and why they won't spark inflation.

Fed's Hoenig Warns Against Further Monetary Action

Kansas City Federal Reserve President Thomas Hoenig broke ranks with some of his fellow regional Federal Reserve executives Tuesday, warning against further monetary action as a way to spur economic activity.

Fed's Dudley Hints at Further Action to Ease Money Supply

Further monetary action by the Fed may be warranted because of high unemployment rates and low inflation, said Federal Reserve Bank of New York President William Dudley during a speech Friday at the Society of American Business Editors and Writers conference in New York.

Six Reasons to Expect Slow Economic Growth

As investors, we often seek insight from the latest news, the most recent weekly and monthly data updates. But the underlying status of the economy is better reflected in long-term trends, and many of those show serious headwinds to future growth in the U.S. economy.

Why a Change in the Fed's Rate Policy Would Sting

There's speculation the Fed may shift its benchmark interest rate to the rate paid on bank reserves from the overnight rate it charges banks. The change could result in higher interest rates for many loans, and especially most credit cards that are now variable and reset based on the ups and downs of the prime rate.