The U.S. Federal Reserve has maintained a program by which it is artificially keeping interest rates low by injecting $85 billion a month of liquidity into the markets – this is the quantitative easing (QE) program.
Fitz-Gerald talks about the economic theory behind the QE. He addresses what the QE taper has already done to the economy, and what it will do as it continues under Janet Yellen, the next Fed chief.
Also explained is why the market has been going up, despite the economic uncertainty surrounding Fed decision making.
Watch this guide to how the Fed actions impact your money. It’s easily broken down for viewers and full of insightful predictions, including a warning from Fitz-Gerald about what will happen to the economy if the taper continues for too long:
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