As the first quarter of 2012 comes to an end, it is encouraging to review the noteworthy economic data of the quarter and discuss the Fed’s posturing. In an effort to fulfill its dual mandate of maximum employment and stable prices, the Fed has focused the last four years on promoting accommodative policy. The hope is to spur growth and fuel the economy in an effort to replenish the 8.8M jobs lost during the financial crisis. Inflation at this point remains benign and sits on the back burner for now. In the meantime, Mr. Bernanke will continue to use his arsenal of monetary tools as inflation remains at bay.
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