Policy Documents

Why Savings are Suffering: Fed QE3 Policy Costs Seniors

Diana Furchtgott-Roth –
November 14, 2012

With fiscal stimulus off the table in a divided Congress, the uncertainty of tax hikes next year, and burdensome regulations discouraging investment, the economy faces substantial uncertainty. Many, including presidents of the regional Federal Reserve banks are worried that more liquidity will accelerate future inflation. It’s clear that political difficulties in America are stifling economic growth. So, people turn to the central bank, hoping that printing money will paper over the problems long enough for another set of politicians to exert more responsible leadership. But central banks are unable to help in the face of persistently flawed economic policies. Loose monetary policy obscures the underlying problem and hurts savers and retirees.