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Central Bank
Fed's easy money will eventually trigger inflation
Fed's easy money will eventually trigger inflation

Bar the door, Nelly — the Fed has abandoned all restraint and will now print money to finance the federal deficit. To support the weak recovery, the Federal Reserve continues to keep short-term interest rates near zero, purchase mortgage-backed securities and push down long-term interest rates. To accomplish the latter, since September 2011, the Fed has sold Treasury bills with terms of less than three years to purchase bonds with longer maturities. Now, with its supply of short-term securities running out, the Fed will simply print new money to buy U.S. government debt — at a pace of $45 billion a month. Adding in its $40 billion in purchases of mortgage-backed securities,...