NEW YORK ( TheStreet) -- In response to a severe recession and worsening unemployment in 2009, the U.S. Federal Reserve embarked on its controversial program of bond purchases. However, the U.S. Federal Reserve electronically created new money out of thin air to make those bond purchases, weakening the value of the U.S. dollar for years and causing many to question the value of quantitative easing policies.Fortunately or unfortunately, the U.S. Fed’s determination to depress bond yields made it more likely that money would flow into riskier assets like stocks and commodities. Even CD and savings account veterans were no longer able to play it completely safe; most had to consider higher-yielding corporate bonds, preferred shares or dividend stocks.
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