Philadelphia, PA -- (SBWIRE) -- 07/03/2014 -- Stock trading is tricky business and one has to know o play their cards right in order to succeed in this highly unpredictable and competitive field. Providing immense help to individual and amateur stock traders with helpful information and the latest news in the world of stock trading is Guerilla Stock Trading, a website that delves deep into the details of various stock developments. The latest breaking news that Guerilla Stock Trading has discovered and shared with its visitors is the sudden revelation of Philadelphia Federal Reserve President Charles Plosser.
According to Charles Plosser, if the Fed’s balance sheet was not allowed to shrink and made to remain large, then the only way left to decrease accommodation would be by raising interest rates higher and faster than they otherwise would with the help of small balance sheet. These views shared by Charles Plosser have come as a surprise for those in the stock trading community as the Fed will have to raise its Federal funds quicker and higher than ever before in order to fight inflation by draining out the huge supply reserve from the banking system.
The reason why Charles Plosser has suggested this solution is because when banks started to lend money out to people and institutions, inflation was expected to occur but it didn’t as they failed to lend money fast enough to keep pace with the credits of the Fed’s QE Program. The large amounts of bank reserves have created problems for the Fed as the only solution in sight now remains what Charles Plosser suggested. This is a very hard thing to execute as it is not easy for the Fed to suddenly raise interest rates and influence the banks’ functioning if the banks already have so much surplus of cash that they would never find the need to borrow.
About Guerilla Stock Trading
Guerilla Stock Trading is a web portal that has been created to give stock traders and edge over others of their ilk by keeping them regularly updated about the goings on in the world of stock trading. The goal of this website is to individual investors with more tools to succeed against the better equipped and financed hedge funder, institutional investor or money manager.