Departing Fed official takes shot at policies "When you encourage consumption by inhibiting your interest rates from rising to their equilibrium level, you will in fact buy problems, and we have in fact bought problems," Kansas City Fed President Thomas Hoenig said in his final speech in office. The Fed has cut rates to near zero and bought more than $2 trillion in bonds to boost the economy. Source: Reuters, September 28, 2011 What are some of the problems that near zero interest rates and $2 trillion of quantitative easing have created? Question content area bottom Part 1 The problems that near zero interest rates and $2 trillion of quantitative easing have created include _______. A. the danger of inflation when the economy begins to recover B. a lack of bank reserves C. the danger of deflation when the economy begins to recover D. high unemployment E. a decrease in potential GDP