WASHINGTON, DC: Federal Reserve Board Chairwoman Janet Yellen testifies about "The Semiannual Monetary Policy Report to Congress." (Chip Somodevilla/Getty Images)
The Federal Reserve made a colossal gamble with its so-called “Quantitative Easing” or “QE,” which is simply a euphemism for its $4.4 trillion binge of buying long-term bonds and mortgages. Its big bid for long bonds, along with parallel programs undertaken by other members of the international fraternity of central banks, has artificially suppressed long-term interest rates, and has deliberately fostered asset-price inflations in bonds, stocks, and houses.
Will this gamble pan out?