The time value of money is a finance concept that recognizes that a dollar held today is worth more than a dollar in the future. This is due to the fact that the dollar held today can begin earning interest as soon as it is received. Or viewed differently, a dollar in terms of purchasing power is worth more today than it will be in the future due to the eroding forces of inflation. Ironically, those that directly manage the money supply in the United States are currently facing a similar time value dilemma, except their challenge deals not with money but instead with opportunity. And when confronted with their latest decision in this regard on Wednesday, they came up troublingly short.
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