What are the economic risks of aggressive fed open market purchases

Expert Solution

It’s better to know that different economists would tackle the question in different ways. It sometimes in due to the central bank’s monetary status, most of the federal reserve policy could get nerves and be worried because it could to a massive damage to everyone.

Moreover, policy makers can get stressed over expanded dangers because of the national bank's aggressive monetary stimulus; however most view those risks as "reasonable" for the time being. Minutes from the latest Fed meeting recommend that individuals have grown increasingly worried that things could get untidy in the event that it proceeds with its asset-purchasing and money-printing policies too far into the future.

In the words of March meeting minutes, "In particular, participants pointed to possible risks to the stability of the financial system, the functioning of particular financial markets, the smooth withdrawal of monetary accommodation when it eventually becomes appropriate, and the Federal Reserve's net income,"

Rahul Sunny answered 2 years ago

What are the Economic Risks of Aggressive FED Open Market Purchases?

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