The Federal Reserve finally seems to be thinking about raising interest rates—if the economy grows fast enough. From the minutes from its April meeting, it seems a number of officials want to start planning how to reduce its massive bond buying program. Every month, the Fed prints around $120 billion and uses it to buy government bonds, corporate bonds, and other securities. The idea is to inject liquidity or money into the system and keep borrowing costs down. But it’s very likely contributing to inflation.
NTD asked Joseph Trevisani at FXStreet how significant it would be if the Fed scaled back its purchases.
