The Planet Money blog from NPR is reporting on the likelihood that the Federal Reserve might once again use extraordinary monetary policy to help the economy. Quantitative easing, as it is known, is the purchase ofÂ monetary assets (Treasuries, Agencies, mortgage backed securities, etc) by the Fed in order to drive down interest rates. Lower interest rates generally encourage people and businesses to borrow and spend more thus stimulating the economy. With the rate of growth in the U.S. economy slowing the Fed may very well return to this expansionary policy, however the member’s of the Fed’s Open Market Committee are not all in agreement.
Quarterly Growth (Annualized)