http://www.nytimes.com/2013/01/28/business/debate-shifts-at-fed-to-easing-its-efforts-to-spur-economy.html?hp&_r=0
As stated in the article, the Federal Reserve has been very clear for their future plans regarding the Federal Open Market Committee (FOMC). They will continue their purchases for bonds in hopes of holding down borrowing costs. However, the Fed has once again started debates on whether or not they should have a larger role in trying to kick-start the weak economy. Also, the Fed announced in December that they would keep short-term interest rates at close to zero until the unemployment rate fell below 6.5 percent. At the time of the announcement the unemployment rate was at 7.8 percent. At this point, this is the last option that the Fed has to go to and it may be time for more fiscal policies to be introduced.
Federal investment requires confidence that the future will bring stable tax rates and a stable Federal policy. If the Fed decided to kick start the economy with a stimulus plan, the consumer needs confidence that it will be successful. The Fed needs to think rationally. They are just increasing the money supply by stimulating the economy, while decreasing the value of the dollar. Stability is more important than the specific values of the numbers.
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