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NFIB: Liquidity Trap Limiting Fed’s Ability to Stimulate Spending

August 08, 2012, 07:39 AM
Filed Under: Economic Commentary

The Federal Reserve's efforts to stimulate the economy continue to be limited by a lack of business and consumer confidence, says National Federation of Independent Business’s (NFIB's) chief economist in “Your Bottom Line With Bill Dunkelberg”.

Despite historically low interest rates, Dunkelberg says the economy is in a liquidity trap: banks have lots of money to lend, but few businesses or consumers are interested in borrowing because of uncertainty over future growth.
"It's hard to stimulate spending when people won't come in and borrow the money," Dunkelberg says.

William Dunkelberg, NFIB's chief economist and one of the nation's top experts on small business, entrepreneurship, consumer behavior and consumer credit policy, hosts the series.

NFIB is the nation's leading small business association, with offices in Washington, D.C., and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through a unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of members to own, operate and grow their businesses. For more information visit

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