Federal Reserve Torpedoes Obama’s Stimulus Rally
Jan 13th, 2009 | By Matthew Collins | Category: Politics & EconomicsObama’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.