What Does Quantitative Easing Mean for Your Bottom Line?

Despite massive amounts of stimulus by the Federal Reserve and the lowest mortgage rates ever, unemployment remains high and growth sluggish, leading to a third round of quantitative easing. But the effect on your bottom line remains to be seen, according to National Federation of Independent Business’s chief economist Bill Dunkelberg.

“The Fed has committed itself to keeping interest rates as low as it can for as long as it needs to get unemployment rates down to some unspecified level,” Dunkelberg said.

Through QE3, as it is known, the Fed has committed to $40 billion monthly to purchase mortgages and U.S. Treasury securities to fight unemployment and keep interest rates low.

Uncertainty over economic conditions and government policy are among the most severe problems facing small business owners, hindering hiring and slowing the economic recovery.

NFIB’s web series, Your Bottom Line With Bill Dunkelberg, helps small business owners learn more about what drives the economy and how economic issues affect their businesses. William Dunkelberg, NFIB’s chief economist and one of the nation’s top experts on small business, entrepreneurship, consumer behavior and consumer credit policy, hosts the series.

About NFIB

NFIB is the nation’s leading small business association, with offices in Washington, D.C., and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through a unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of members to own, operate and grow their businesses. For more information visit www.nfib.com.

About William Dunkelberg

William C. Dunkelberg has been chief economist for NFIB since 1971. He is currently professor of Economics at the School of Business and Management, Temple University, and served as dean from 1987-94. He was director of the Center for the Advancement and Study of Entrepreneurship from 1991-94.

Dunkelberg is a nationally recognized authority on small business, entrepreneurship, consumer behavior and consumer credit policy. He has been an advisor to cabinet officers, a member of the Consumer Advisory Council of the Federal Reserve System and is a past president of the National Association of Business Economists. He has chaired the Census Advisory Committee and is an elected member of the Conference of Business Economists and the National Economic Issues Council. He is also a frequent contributor to broadcast and cable news programs and is often quoted in leading newspapers and magazines.