US Economy - Fed Statement--Will Print More Money If Stock Market Declines

In plain English the Fed announced that they will print more money if the SP 500 declines substantially. Nothing like an explicit Fed guarantee to support asset prices. First reaction from the market seems positive with the SP 500 reversing most of its losses.

You can really see how determined the Fed is in its pursuit to create inflation. How stable prices and positive inflation are compatible is beyond me. I thought truly stable prices meant 0% inflation, but then again I care about the purchasing power of the dollar. The Fed obviously does not. The dollar is getting smacked in the minutes after the Fed statement. EUR/USD is over 1.32. Gold futures hit record high. Ahh--more competitve currency devaluations, just like the 1930's.

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