I doubt this news is the least bit surprising to anybody. The Federal Reserve announced the QE Forever isn’t going to end any time soon.
In a press conference today, the Federal Reserve announced it will keep interest rates low and leave QE3 unchanged, continuing to buy $85 billion a month in bonds to prop up the economy.
The Fed pegs the unemployment rate at 7.3 percent to 7.5 percent for this year, slightly better than their previous prediction three months ago of 7.4 percent to 7.7 percent. Next year’s forecast is 6.7 percent to 7 percent, also an improvement from the older estimate of 6.8 to 7.3 percent. For the first time, the Fed’s 2015 prediction indicates the unemployment rate will be at or under 6.5 percent, the target rate for ending QE3. Previous estimates put 2015′s unemployment rate at 6.0 to 6.6 percent.
However, Bernanke cautioned in the press conference that the Fed will also take into account hiring rates, quit rates, and jobless claims. (Read More)
This will continue until either:
- A) – A Republican takes the White House and will take the blame for the shock to the economy when this is all brought to a screeching halt. Or:
- B) – The whole thing just naturally comes crashing down.
I almost prefer option B because Republicans are constantly taking the blame for the messes the Democrats create. Perhaps I should say that conservatives are constantly taking the blame – oftentimes Republicans cave and implement progressive policies leaving the Democrats and the media with an easy scapegoat.