Gist: To further help the economy, the federal reserve will probably buy a lot of bonds which will push interest rates down. This will allow people to buy homes which will increase the demand for construction workers. Businesses might build more factories and more jobs will be created.
Economist Steven Leaves doesn't think it will help the economy to great extent. He says that previous attempts to do that ended with banks and companies "sitting on the money" instead of using it to hire new employees. Leaves believes that the problem isn't interest rates but confidence in the economy. Other economists think it will eventually turn around confidence and companies will start thinking about hiring new employees. Furthermore, they think if the federal reserve won't do anything the economy will suffer.
No comments:
Post a Comment