Will the Fed Overinflate the Dollar?

It is no secret that we are in the middle of a fierce recession, one that the Federal Reserve has tried to combat by blitzing it with a variety of tools. One of these has been to purchase $1.25 trillion in troubled mortgages and $300 billion in government debt by printing money, a tactic that many economists say may end up ruining the economy.
 
The Federal Reserve is well aware that such a tactic could end up being fatal for the economy, which is why it decided it would only create enough money to address the problem and stop short of causing widespread financial destruction. So far, the Fed has not released many statements that would allow analysts to gauge when it plans to finish its current plans.
 
If the government were to continue printing money without regard to economic stability, the resulting inflation would have severe repercussions on the economy. However, any such crisis is still comfortably far away as long as the Federal Reserve stays on its current trajectory.

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