why would the fed stop it's purchases if inflation is well below its target rate. the fed is battling deflation, so why not continue until we get it?
Because no nation in history has monetized its debt without going belly up in a mushroom cloud of hyperinflation. The FED knows ultimately there has to be a FISCAL solution to our nations debt woes.
They should stop--since it's not helping, but they might not. They could stupidly think adding more will help.
How about this...why should the big banks benefiting from the QE keep pumping it into a falling market?
How have those purchases gone over the last year for them? Have you reviewed the rise in interest rates from 5-30's?
Sentiment: Strong Sell
so what do you recommend in terms of monetary/fiscal policy?