Friday, August 23, 2013

Fed to use accounting tricks to hold down interest rates when QE ends

As the market nears the September threshold for when Quantitative Easing (QE) might be tapered off, the Federal Reserve is left in a dilemma on how they can keep interest rates down as they begin to rise after years of money printing.  In a new report coming out of the recent FOMC minutes, Fed members were briefed on a controversial scheme known as reverse repo as a potential way to liquidate excess money, and keep interest rates down.

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