Schizophrenic security markets are reflecting the Federal Reserve's dilemma. It's torn between reducing and eventually eliminating its ongoing additions to huge excess member-bank reserves and supporting what it sees as a still fragile economy with unaccept-ably high unemployment With trillion-dollar federal deficits and gridlock in Washington, further fiscal stimulus is off the table. So monetary easing is the only game in town. And with the federal funds rate already at zero, it's left to quantitative easing.
展开▼
