Health & Fitness
Unprecedented Move by Feds
Unprecedented decisions are being made by the Federal Reserve in an attempt to boost the economy. Many are concerned about the possibility of inflation occuring as a result of these changes.
Capital markets spent the first half of the week calmly waiting for two things; a German court ruling on the constitutional ability to fund the ESM bailout fund, and the Fed meeting announcement. In both cases, equity investors got what they wanted. Germany was cleared to be the largest provider for the ESM and Bernanke yet again exceeded expectations for additional stimulus. The Fed committed to buying $40 billion of mortgage backed securities per month for an indefinite period of time. Stocks rallied. The unprecedented actions by the Fed also fueled inflation concerns, causing Treasuries to fall and gold to spike.
by Craig Birk, director of portfolio management at Personal Capital.
