The US Federal Reserve’s Open Market Committee meets again this week, and is widely expected to announce the end of its third round of money printing, dubbed “QE3”.
Over nearly six years, the Fed has injected $3.6 trillion into the US economy through so-called quantitative easing, buying government bonds and other securities from American banks in an unprecedented stimulus program.
In that time, the US economy has gone from the near collapse of its financial system and a 6.3 per cent annualised economic contraction in the December quarter of 2008, to a moderate, albeit fragile, recovery.
Unemployment is below 6 per cent for the first time in six years, and the US economic growth rate has averaged 2.3 per cent since 2009.
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