Ask an expert: What do Fed's moves mean?

MSN Money's Anthony Mirhaydari answers Facebook users' questions about the central bank's recent policy decisions.

By MSN Money Partner Sep 18, 2012 1:15PM
The Federal Reserve's policy statement last week sent markets to multiyear highs. But what are the new measures, and what do they mean to the broader economy? In this video, MSN Money columnist Anthony Mirhaydari explains the Fed's moves and what they mean to average Americans.

 

As he answers questions from MSN Money's Facebook community, Mirhaydari also talks about the political ramifications of the Fed's moves, as well as potential investments.

11Comments
Sep 18, 2012 2:53PM
avatar
Right now Bernanke is trying to make sure Obama gets re-elected so he can keep his job. He knows Romney will get rid of him if he wins. WE DO NOT need more QE.......it will mean higher oil prices and food prices.
Sep 18, 2012 4:45PM
avatar

Q1 and Q2 have been failures, so the Fed answer is to throw more money at problems which will create new bubbles for future collapse. We will pay more for oil, food and many more imported goods.  Inflation is unavoidable.  The Fed needs to stay out of economy and pumping up Wall Street and start to preserve the value of dollar and stop the inflation which is already occurring.  They would admit to this inflation if they didn't distort CPI!!

Sep 18, 2012 4:34PM
avatar

it is apparent that this move is to save the pres re-election.  the money we do not have will be thrown out again.  knowing it has no bearing to save the economy.  it is band aid to keep the pres re-election looks a little better with all the money that will again be wasted.  the money we do not have. 

 

it is the very reason that a change in the white house is more important then ever.

Sep 18, 2012 6:09PM
avatar
 This recent Fed action only benefited the wealthy who were told to buy federal bonds at various times previously. Now they are being repaid with the added benefit of inflating the stock market so holders can sell bonds back at a profit while selling their stock at a false profit. The Wall Street insiders, and senators and Congressmen who are immune from insider trading laws, reap the rewards at taxpayer expense. Isn't the fed.gov wonderful? 

Who needs the Mafia? We have the fed.gov to stand in its stead. How dumb are you? Washington thinks "highly".
Sep 19, 2012 7:45AM
avatar
Ingenious! Encourage to spend more instead of save more with money or jobs that no one has!! What a brilliant idea!!! Higher stocks and more mortgage backed securities will increase net worth while consumer confidence will stimulate GDP and create jobs. Wow, what a plan!! Isn't this what got us here 4 years ago with inflated home prices and mortgage backed securities? Hey, what about  no more QE or stimulus so our dollar stops tanking, slash spending, raise interest rates, consume less and let's start saving and producing more while increasing our exporting productivity so true GDP will grow and our trade deficit will decrease. This will create jobs!!! Am I in bizarro world or some alternate parallel backward universe.
Sep 18, 2012 5:42PM
avatar

This is political manipulation at its finest. The fed juices up consumer spending with money we don't have, making it look like values are improving for creating more jobs. This will not stimulate the economy anything for longer term, but the debt will be here long after the election. Romney understands more about capital and  business, and how to turn it around...simple as that. More of the same direction will provide more of the same results

....R U ready for that?

Sep 18, 2012 11:26PM
avatar

How does this affect the average Amercian?  I sure did not see: higher gas prices, higher food prices and just about everything else...which translates into less money to spend!! 

 

What are these guys smoking??  Pass the kool-aid please..

 

QE3 to infinity and beyond (in my best buzz light-year voice)

Sep 18, 2012 4:48PM
avatar
They mean banks will take large nets and scoop up tax payers money and keep it.
Sep 18, 2012 4:31PM
avatar
No God, No Peace!  Know God, Know Peace! 
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

118
118 rated 1
270
270 rated 2
472
472 rated 3
714
714 rated 4
624
624 rated 5
608
608 rated 6
623
623 rated 7
445
445 rated 8
319
319 rated 9
125
125 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
ATVIACTIVISION BLIZZARD Inc10
BIDUBAIDU Inc10
BMYBRISTOL-MYERS SQUIBB CO.10
CELGCELGENE CORP10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.