NFIB’s Dunkelberg Says Quantitative Easing Has Failed To Spur Employment | Your Bottom Line
Despite purchasing treasury and mortgage bonds at a trillion dollar a year rate, the Federal Reserve's quantitative easing program has failed to spur the kind of economic recovery expected, says NFIB’s chief economist on his web series Your Bottom Line With Bill Dunkelberg.
"Quantitative easing has not done what it's supposed to do - increase employment," Dunkelberg said.
The fed has increased its portfolio by three trillion dollars since the recession began.
"The Fed cannot continue to do this forever, so it will end, and probably soon," Dunkelberg said.
As a result, interest rates will rise, and markets will initially react negatively as holders sell of their stock and bond holdings. However, Dunkelberg said we should welcome a return to normalcy where markets and not the government set interest rates. 2:42
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