The Fed Continues to Pour Money

    On Wednesday, the Fed voted at its final monetary policy meeting of the year to maintain at least $120 billion bond purchases monthly. The Fed said it will continue to support the economy with massive monetary stimulus until "more substantial progress" is made on employment and inflation.

    The FOMC reiterated its November statement that the Fed will maintain the federal fund' target rate at 0-0.25% until full employment is reached and inflation rises to 2% and is expected to be slightly above 2% for some time. The interval remains unchanged.

Meanwhile, lawmakers are struggling to reach a deal on a new stimulus package, with a fiscal and monetary policy aimed at sustaining the economy until a COVID-19 vaccine is widely available.

    Simple logic, will this long-term large-scale monetary stimulus policy trigger inflation?