By David ChazanThe US dollar has been on a steep slide since late last year, and the slide has caused some to wonder if the Fed is too soft on the economy.
The Fed, however, appears to be keeping its sights firmly on the long-term outlook for the US economy, and has remained upbeat on the prospects for its 2.4 percent annual inflation target.
The US stock market is currently in free fall and some investors are questioning the wisdom of continuing to invest in stocks when the market is down more than 50 percent from where it was in the summer.
According to a report released by Bank of America, the S&P 500 has fallen 2.9 percent in the last month.
The index has lost nearly 40 percent from its peak of 2,929 in late September.
While stocks have been the primary culprits, the Fed has been making some moves to help the economy out of the slump.
On Thursday, the Federal Reserve announced a second round of quantitative easing, which would pump $85 billion into the economy through a combination of asset purchases and tax breaks.
The Fed’s action is designed to offset the effects of the recent drop in the dollar and its effects on foreign exchange rates.
Fed chair Janet Yellen has been cautious in her approach to monetary policy.
“The pace of monetary policy tightening will be gradual, and will not exceed the level that would provide the maximum impact on inflation,” she said in a speech on Monday.
She added, “It will be appropriate to continue to adjust monetary policy periodically as needed to achieve the policy objective of inflation that is needed to support the economy and the job market.”
While Yellen’s comments seem to indicate that she is not too worried about inflation, it is clear that her comments have led to a lot of concern among investors.
If the Fed does ease monetary policy, it could mean that stocks will be more expensive.
Inflation is expected to rise, but the Fed doesn’t want to push inflation too high.
That could lead to some companies losing money and causing some investors to pull out of stocks.
Another possible downside is that the Fed could reduce its bond purchases and leave investors more exposed to interest rate increases.
It is also unclear if the Federal Open Market Committee will increase its bond buying pace.
But the Fed remains upbeat on inflation, and its actions seem to be having an effect.
With the economy in good shape and investors optimistic about the Fed’s ability to keep interest rates low, it looks like it will be able to keep its long-run inflation target at 2.5 percent.
On top of that, the stock market has been performing well.
US stocks have rallied more than 70 percent in 2017, according to S&p 500.
Investors have also been optimistic about Donald Trump’s chances of winning the US election, and a lot has been made of how much he could do for the economy as president.
This has led to many to believe that the Federal Government is doing the right thing and is not taking too much action.
At the same time, investors are worried about the risks of the economic downturn.
Last month, the Dow Jones Industrial Average hit a record high of 20,037, while the S.&.
P. 500 was up 1,903.
At least one investor said that he thinks the Fed will keep the long term inflation target, but that it could lower it in the coming years.
There are other reasons that investors are concerned.
For example, some of the Fed money may be flowing into bonds, and there is speculation that it will take longer for the Federal government to buy up these bonds than expected.
Other investors fear that the U.S. economy is heading for a recession, and that it is going to be difficult to regain full employment in the near future.
And then there is the threat of a recession if the unemployment rate rises above 7.1 percent.
If you are looking for more information on the US stockmarket, check out this CNBC article: The Stock Market Is Crashing Again and What You Need to Know.
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