Fed's loosening drives investment overseas, economists say

11/18/2010 | Bloomberg

The Federal Reserve's monetary easing might have little effect on unemployment because its major impact is to fuel foreign investment, economists said. That view is supported by Richard Fisher, president of the Federal Reserve Bank of Dallas. He said executives are telling him that the best way to use the cheap money is to invest abroad. In the first of half of this year, foreign investment by companies exceeded domestic investment at an annual rate of $220 billion, according to the Commerce Department.

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