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But while the move is helpful for the economy in the short run, the extremely loose monetary policies likely will spark concerns about inflation as the economy picks up next year, causing interest rates to rise later on, he said.

Peter Schiff, president of Euro Pacific Capital, said investors should be wary of the threat of future inflation as the Fed turns on the dollar-printing presses once again to finance the nation’s burgeoning debts.

“The next economic leg down, whether it be an uptick in the unemployment rate, a surge in energy prices, or a dip in GDP, is sure to convince Bernanke and Co. to throw open the liquidity spigots as far as they’ll open,” he said. “When the next liquidity flood hits, look for the almighty dollar to be washed away.”