Fed to Print US$4 Billion; Bitcoin’s Role?

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The Federal Reserve of the United States has released their plans to inject another US$4 billion into its economy through quantitative easing, in an attempt to protect the U.S. from future recessions.

In its staff working paper entitled “Gauging the Ability of the FOMC to Respond to Future Recessions,” the Fed explained that “large-scale asset purchases and forward guidance about the future path of the Federal funds rate should be able to provide enough additional accommodation to fully compensate for a more limited [ability] to cut short-term interest rates.”

However, the Fed’s fundamental misunderstanding of the consequences of short-term fiat production led to a vast amount of criticisms from financial experts that explain QE or any large-scale asset purchases don’t have the ability to counterbalance an economical shock in most circumstances.

According to ZeroHedge, Citi head of G10 FX Steven Englander wrote, “I would have rewritten the conclusion as: “large-scale asset purchases and forward guidance about the future path of the Federal funds rate have almost no ability to offset a shock in current circumstances, but down the road may be able to provide enough additional accommodation to fully compensate for a more limited


Read more ... source: LiveBitcoinNews

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