The Federal Reserve on Thursday, in an effort to target stubbornly high unemployment, offered an array of apparently open-ended stimulus programs designed to keep interest rates low until an economic recovery gains significant traction.Federal Reserve Chairman Ben Bernanke hinted recently that Fed policy could soon be tied directly to the U.S. labor markets. The Fed’s announcement did just that.
In a statement, the Fed said, "If the outlook for the labor market does not improve substantially, the committee will continue its purchase of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability.”
Stock markets had long anticipated a single, large bond buying initiative, commonly referred to as QE III, and stocks briefly sold off following the 12:30 p.m. EST announcement by the Federal Open Markets Committee (FOMC).
Instead, they got the kitchen sink of stimulus measures and stocks quickly rebounded.
The Fed announced a program of mortgage-backed securities purchases valued at $40 billion each month. The Fed also said it would extend Operation Twist, a program initiated a year ago designed to shift the central bank’s portfolio toward long-term assets. Read more......
Maybe I don't understand economics. But wont what there doing just devalue are dollar even more? Eventually driving us into total collapse of society as we know it.
ReplyDeleteIf it was this easy (printing money) why didn't we just start printing money centurys ago? Ben is so smart. He figured out a mechanical way to guarentee prosperity that no one in the history of humanity ever thougth to try. Oh wait...maybe they have.
ReplyDeleteBuy a nice wheel barrel while you still can comrade. You will need it to haul the worthless Obama-dollars just to buy a loaf of stale bread at your local homoland security run bakery.
ReplyDelete