The Fed has a premature extractulation problem

It happens to a lot of central banks. But there are work-arounds.

Money flow
(Image credit: (iStock))

The Federal Reserve just can't seem to get the job done. Since the financial crisis of 2008, America's central bank has repeatedly tried to stop its unconventional stimulus program — and each time has proven premature.

That looks to be happening again today. Just last month, the Fed finally finished tapering off its last round of quantitative easing, and the economy immediately started to slide toward deflation. If this continues, then the Fed may be forced to step back in with more stimulus. And if that happens, they really ought to consider a serious change in strategy.

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