Fed Stands Pat, Announces No New Stimulus

From FoxBusiness.com - As expected, the Federal Reserve Board stood pat on Wednesday, refraining from further economic stimulus programs and leaving interest rates alone. The Fed said economic growth “strengthened somewhat” during the third quarter, which reflected a reversal from the spring when growth slowed due primarily to temporary factors such as the Japanese earthquake and tsunami in March. The question on many minds ahead of the Fed’s decision was what weapons the Fed has left to spur economic growth. Another round of quantitative easing has been hinted at but there is strong opposition both in Congress and among the handful Fed dissenters to the central bank buying up more debt on top of the nearly $3 trillion already purchased since the 2008 financial crisis. The first two rounds of quantitative easing have been met with limited success at best and skeptics say another round isn’t likely to help much either. Besides, improving liquidity by essentially printing money eventually leads to inflation. Read more

Fed Stands Pat, Announces No New Stimulus