';



Tuesday, February 14th, 2012

Posts Tagged ‘ liquidity trap ’

Federal Reserve Torpedoes Obama’s Stimulus Rally

Jan 13th, 2009 | By Matthew Collins | Category: Politics & Economics

Obama’s ever-growing stimulus package isn’t giving the markets a boost. Matthew Collins says the Fed’s zero-rate interest policy has created a liquidity trap, in which businesses and consumers prefer to hoard cash than make risky investments. That makes stimulating the economy very difficult, and dampens hopes of an ‘Obama rally’ in the near future.