Later this year, because of an optimistic outlook on the economy, the Federal Reserve may begin to ease its efforts to stimulate the economy.
“(Pulling back) would basically say that we’ve had a relatively decent economic outcome in terms of sustained improvement in growth and unemployment,” Fed Chairman Ben Bernanke said, according to a report from The New York Times. “If things are worse, we will do more. If things are better, we will do less.”
Despite the change, the Federal Reserve will continue to dump about $85 billion a month into the U.S. economy, according to The Guardian. But the Fed’s efforts, however, are not easing woes–news of the change has rattled international investors and financial markets.
To discuss what this development means for the U.S. and world financial markets, The Takeaway welcomes Jon Hilsenrath, Chief Economics Correspondent for The Wall Street Journal.
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