What Happens When The Federal Reserve Stops Artificially Boosting The Economy, And Should You Worry About It?

Brett Nelson, Contributor, Forbes
Thu, 03/14/2013 - 11:37am

To quell the latest financial crisis, the Federal Reserve smashed interest rates to the floor by buying bonds with money it effectively prints. Since 2008 assets on the Fed’s balance sheet, including those bonds, have tripled, to $3 trillion. (Hey, people needed encouragement, and low rates are encouraging.) The mixed results: Entrepreneurs and homeowners got some relief, while savers got whacked along with the value of the U.S.

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Topics: dow jones industrial average economy entrepreneur federal reserve homeowner housing market interest rate stock market u.s. economy

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