1.5 trillion dollars – that is the amount that the Federal Reserve has spent to date in order to spark recovery into our economy and apparently they aren’t done yet.
It was reported that the Federal Reserve is likely to announce a new plan that will resume large-scale asset purchasing once again in order to help boost the economy. Economic analysts are highly anticipating the November Federal Open Market Committee meeting because this is apparently when the announcement is likely to be made. And when is this meeting you may be wondering? Well, it’s today.
Yes, today we find out how much more the Fed is willing to spend in order to save (the economy that is). “Our best guess is that the FOMC will launch a program of at least 500 billion dollars and possibly with some flex up to 800 billion,” according to HIS Global Insight Analysts.
All of this spending is being done for an economy that is actually currently on the rise as the third quarter reports indicate. The annual percentage rate grew by 2 percent in July-September, which was slightly more than the 1.7 percent growth seen in the 2nd quarter. However, this growth is apparently not enough for analysts. Economists say this economic escalation needs to reach 3% to begin to reduce unemployment. So now the Fed must continue to spend and no one can even say this is the only way to fix the economy.
So what dollar amount do we have to hit before the Fed says, “Sorry, but there’s nothing else we can do.”? I’m all for spending if that is what needs to be done, but it begs the question – when is enough, enough?