Federal Pulls New Lever - World Markets Fall

Ben Bernanke

Since the financial crisis worsened in 2008, the Federal Reserve has acquired probably dozens of new options for influencing the U.S. and world economies, ranging from propping up the commercial paper market to buying mortgage-backed securities to lending dollars abroad in exchange for euros, yen, and other currencies. The new options, most not currently in use, increase the Fed's flexibility but complicate the job of conducting monetary policy. They also make it harder to communicate that policy to investors and the general public. Read more here:

Federal Pulls New Lever - World Markets Fall