Will they or won’t they?

In June the Federal Reserve indicated that they would need to taper off their bond buying program. The program was to keep interest rates low in hopes of spurring the economy. Making money cheap to banks in hopes that banks would turn around and lend money.

Nice idea in theory, but if on the Fiscal side of things the government is making the cost of doing business so expensive there is really not a lot that cheap money will do.

Anyway when they announced this interest rates bounced off of their historic lows. Now, with a new Fed chief coming in the question is will how long will they continue this policy? With the costs of the Affordable Care Act being a much bigger hit to the private sector than originally anticipated and weaker jobs numbers the consensus is that the Fed may have to maintain this policy for at least through 2015.

A one sided solution because Washington refuses to relinquish any grip on the taxpayers money.

Stay tuned.

Federal Reserve