Now that the Federal Reserve has launched its third, open-ended, quantitative easing (QE3), investors need to consider the risks. Certainly Fed Chairman Ben Bernanke has. He outlined them recently at the Kansas City Fed’s annual conclave in Jackson Hole, Wyo. There, in addition to providing considerable perspective on the extraordinary steps the Fed has taken since the 2008-2009 financial crisis, the chairman reviewed four critical risks involved in non-traditional policy tools and procedures. He probably could have added a fifth.
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