A Columbia Business School professor explains quantitative easing and the Feds' $120 billion per month bond-buying program with an analogy.
The Fed has a dual mandate to control inflation as well as unemployment, unlike other central banks.
Applications for home mortgages in the U.S. have dropped to a record low since the Federal Reserve announced its plans to slow its bond-buying program.
On Wednesday, the Federal Reserve announced it will cut its bond-buying program by $10 billion starting January. So what about this whole tapering thing? What’s it gonna mean for you and me and Aunt Mabel?