Kaila K, Emily O, Kelsey N - Period 6
Stocks Pull Back After Fed Minutes
The central bank has been funding a stimulus program, buying bonds to help the recovery of the economy and the stock market. With this program, the stock market has reached record highs. The current plan is to continue into 2014. The central bank’s chairman, Ben Bernanke, is at the end of his term early in 2014 so the decision depends on others. With the stock market at record highs, it is likely to fall when the stimulus program stops.
This article is relevant to Economics because the stock market is a major part of the economy. How the stock market is doing is an indicator as to how the overall economy is at a time. It helps show how high consumer confidence is.
Question
Should the feds continue the stimulus program in 2014? Why or why not?
Dow, The. "Fed Minutes Slightly Rattle Markets." CNNMoney. Cable News Network, 20 Nov. 2013. Web. 21 Nov. 2013. <http://money.cnn.com/2013/11/20/investing/stocks-markets/index.html?iid=SF_BN_River>.
6 comments:
I think that the feds should continue the stimulus program because it is helping our economy grow and recover.
Yes, because it is helping our economy continue to grow.
Sammie Peterson and Nate Unzen
The federal government should discontinue giving stimulus money to companies to help them recover. I feel that letting the economy be is a better solution then attempting to help the economy by throwing money at it.
I think that they should continue because it gets money circulating which brings about a better economy because if people as excess money they are more likely to spend it.
I think it should continue because its helping the economy.
In one of our next units, we will learn about monetary policy (controlling the money supply). Increasing the money supply is meant to stimulate the economy by increasing spending, which in turn should lead to lower unemployment.
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