Fed can’t explain it, but, no, low interest rates appear not to have discouraged savings. Tea Party catastrophe mongers won’t change their claims, though, I’ll bet.
Do they even look at the facts?
Also: No, the Fed is not “flooding the nation with increased money supply.”
According to Rex Nutting at MarketWatch: “The Fed is not flooding the economy with money. The growth of the money supply has actually slowed since the adoption of QE3. Yes, the Fed has conjured about $1 trillion in the past year to buy super-safe Treasury and mortgage-backed bonds from the private sector in a bid to force investors to put their money into riskier investments that will help the economy grow a bit faster.
Nutting’s column at MarketWatch is worth the read just for the links he provides to documents that explain what the Fed does and how the economy works — documents that appear beyond the reading and perhaps beyond the ken of far too many critics of the Fed and actions we need to take to get to robust economy.
(Why, yes, Nutting is a veteran of the Daily Utah Chronicle and Utah’s journalism program. Why do you ask?)
This post is cross-posted, with express permission, from Millard Fillmore’s Bathtub.