Explain the future consequences of this action on economy

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The Federal Reserve headed by Ben Bernanke announced that they will buy $85 billion dollars of government bonds each month until the unemployment rate reaches 6.5%. These purchases are known as quantatative easing because more money is placed into circulation and it keeps interest rates artificially low. Express your view on this FED action. You can be PRO or CON but explain the future consequences of this action on the economy and the inflation rate. Please indicate the documentation on your research.

Reference no: EM13156566

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