One focused on the risks of the Fed’s taking more action to help the economy. This camp — known as the hawks, because of their vigilance against inflation — worried that the Fed could be sowing the seeds of future inflation and that any further action might cause global investors to panic.
Another camp — the doves — argued instead that the Fed had not done enough: inflation remained near zero, and unemployment near a 30-year high.
I tend to side more with the "hawks". This move to invest over $500 billion is extremely risky since it could possibly not be effective and almost inevitably will cause inflation in the future.
ReplyDeleteI feel like it is a lot of money to be circulating and i dont know how this will effect the economy. I can see it leading to too high of inflation rates and causing more chaos.
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