Low interest rate policies of the federal reserve

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Over the past several years there has been debate over the directions of U.S. fiscal and monetary policies. On the one hand, there are looming U.S. debt and deficit issues. On the other hand, there are the low interest rate policies of the Federal Reserve. What are your thoughts on the risks of either changing or not changing course? As part of this, consider that a partial objective of the Fed’s quantitative easing (QE) is aimed at deficit and debt reduction. As U.S. debt continues to expand, what do you envision for the value of the dollar and for inflation?

Reference no: EM131185678

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