Wednesday 16 December 2009

12/16 About.com Stocks

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How to Unwind the Fed?
December 15, 2009 at 9:25 am

The Fed's Open Market Committee is meeting today and tomorrow, but don't expect any change in interest rates.

With Fed money near 0%, it can't go much lower (unless they decide to pay banks to borrow more).

The real question is how and when will the nation's bank begin unwinding the extraordinary measures put in place to prevent the economy from plunging into a depression.

Some observers fear (correctly) that the exit strategy may be very risky, requiring a cautious Goldilocks touch - not too fast and not too slow, but just right.

The committee will issue a statement tomorrow, which will be examined in detail for any hint of possible future moves.

Stay tuned.


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How to Unwind the Fed? originally appeared on About.com Stocks on Tuesday, December 15th, 2009 at 14:25:25.

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