December 18, 2013
Statement from LIA Chief Economist John Rizzo on Fed's Decision to Scale Back Stimulus Program
By: Dr. John A. Rizzo
"The Fed's announcement that it will scale back its stimulus program to $75 billion per month from $85 billion beginning in January 2014 strikes me as premature, given that the economy is still well below capacity, unemployment is elevated and inflation minimal. Still, the Fed remains committed to keeping short term interest rates low and the magnitude of the stimulus tapering is not large. So this modest shift in policy should not damage continued economic recovery on Long Island."