Deflation is great, but recessions are terrible

  So the government succeeds in its endeavor in controlling inflation. The dollar, the product of the Federal Reserve, rallied and strengthened against a basket of goods. Dollar rallied against wages, home prices, dow, cost of oil. The fact that salaries, goods, services, and equities are falling in price is evidence of a stronger dollar.  But this was all created through unemployment and recession. And while people hate inflation, they hate recessions just as much if not more. So the government is yet again reducing interest rates and increasing quantitative easing all to lift the burden of recession.

  As of now, the project has not been as successful as it was back in 2001 when the fed reduced interest rates in order to hold off a recession. There is still a few more years to see how these interest rate policies play out. It worked for reagan, it worked clinton, it worked for bush jr. It remains to be seen if this will work for obama.