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What is the Fed Up Too?

It is becoming more and more likely that the fed might not begin to taper quantitative easing in September.  If this program is removed, it would likely cause interest rates on treasury bills and mortgages to rise.  

According to the president of the Minneapolis Federal Reserve Bank, Narayan Kocherlakota, the current rate of stimulus was not enough.  Kocherlakata cites that low inflation rate and the high level of unemployment. The QE program was design to keep interest rates low to make it cheap for consumers to borrow money and spend.  However the program was designed to increase the amount of money moving in the economy without affecting the monetary base.  According to the fed, it should have very minimal impact on the inflation rate and hence the real economy.

Should the Fed increase the stimulus instead of tapering?  Should be an interesting month.