Federal Reserve Watch: Fed Keeps Pressure On
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John M. Mason18.25K FollowersFollow5ShareSavePlay(6min)CommentsSummaryThe Federal Reserve continues with an ongoing round of quantitative easing, steadily increasing its securities portfolio over the past twenty weeks.Despite rising excess reserves in the banking system, the Fed is maintaining its policy rate, with no imminent need for further cuts.Liquidity remains abundant, but the risk of substantial inflation exists if excess reserves are converted into deposits.I expect U.S. economic growth to remain in the 2.0%-2.5% range and inflation to rise moderately, with no near-term end to quantitative easing. Douglas Rissing/iStock via Getty Images The Federal Reserve did not add much in the way of securities to its securities portfolio this past banking week. This was the twentieth week that the Federal Reserve has been in its first round of quantitative easing following anThis article was written byJohn M. Mason18.25K FollowersFollowJohn M. Mason writes on current monetary and financial events. He is the founder and CEO of New Finance, LLC. Dr. Mason has been President and CEO of two publicly traded financial institutions and the executive vice president and CFO of a third. He has also served as a special assistant to the secretary of the Department of Housing and Urban Development in Washington, D. C. and as a senior economist within the Federal Reserve System. He formerly was on the faculty of the Finance Department, Wharton School, the University of Pennsylvania and was a professor at Penn State University and taught in both the Management Division and the Engineering Division. Dr. Mason has served on the boards of venture capital funds and other private equity funds. He has worked with young entrepreneurs, especially within the urban environment, starting or running companies primarily connected with Information Technology.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.