Federal reserve prints money
Matt Pavich, Financial Advisor was on Good Morning San Diego to talk with KUSI's Dan Plante about the Federal Reserves plan to buy treasury bonds and to print $600 billion in “fresh” currency.
The Federal Reserve is printing $600 billion in fresh currency to inject into the economy. The Fed's action was widely criticized at the G-20 summit in Seoul last week. Will it fuel a disastrous round of inflation? Will it bring back the housing market?The fed's action almost certainly will weaken the dollar against other currencies. Is this good or bad–or both? Feds also plan to buy $600 in treasury securities between now and June 30, 2011. Another $300 billion of maturing and interest payments to be used for repurchase for a total of $900 billion.