Thursday, November 4, 2010

What did the Fed Do?

Here is a statement by Ben Bernanke over the Federal Reserve's recently policy decisions. Please feel free to ask if you don't understand a particular part of the article. Also pay attention to the last 2-3 paragraphs. We talked about this in class.

This is the goal of the Fed's policy:
(1) Push more businesses to expand capacity and hire workers
(2) Push the dollar downward and make American exports more competitive and therefore generate more jobs
(3) Allow more Americans to refinance their homes at low rates, thereby giving them more cash to spend and thereby stimulate more jobs.

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