Federal Reserve Blames Stagnant Economy on Money “Hoarding”

Inflation is not as high as it “should” be. In spite of the fact that the Federal Reserve has pumped $4.5 trillion dollars of non-existent money into the economy and has held its interest rates at zero percent for six years, money just isn’t moving around much. And the Federal Reserve thinks it knows why: Banks have put away close to $2.8 trillion in reserves, and households are sitting on $2.15 trillion in savings—about a 50 percent increase over the past five years. “So why did the Read more […]