sailingaway
09-13-2012, 01:18 PM
http://media1.policymic.com/site/articles/14672/photo.jpg
UPDATES BELOW
On Thursday, the Federal Open Market Committee announced that the Federal Reserve will purchase $40 billion a month in mortgage-backed securities indefinitely (MBS) from financial institutions, will keep interest rates at zero percent until at least 2015, will make additional purchases if the employment picture doesn't improve, and in general will maintain an stimulative policy for a "considerable time." The announcement has dismayed Austrian School economists everywhere.
The announcement sent stock and commodities prices soaring, and the U.S. dollar plummetting, as the Fed gave a clear indication that ZIRP and monetary stimulus will be the new normal going forward. Although the announcement would seem to fall short of the expectations many had -- that the Fed would make asset purchases totaling upwards of $400 billion over the coming months -- the open-ended nature of the Fed's latest action makes it clear that more monetary stimulus is not only possible, but probable.
more at link: http://www.policymic.com/articles/14672/ron-paul-qe3-bernanke-press-conference-live-stream-fed-announces-40-billion-in-monthly-mbs-purchases-zirp-through-2015
UPDATES BELOW
On Thursday, the Federal Open Market Committee announced that the Federal Reserve will purchase $40 billion a month in mortgage-backed securities indefinitely (MBS) from financial institutions, will keep interest rates at zero percent until at least 2015, will make additional purchases if the employment picture doesn't improve, and in general will maintain an stimulative policy for a "considerable time." The announcement has dismayed Austrian School economists everywhere.
The announcement sent stock and commodities prices soaring, and the U.S. dollar plummetting, as the Fed gave a clear indication that ZIRP and monetary stimulus will be the new normal going forward. Although the announcement would seem to fall short of the expectations many had -- that the Fed would make asset purchases totaling upwards of $400 billion over the coming months -- the open-ended nature of the Fed's latest action makes it clear that more monetary stimulus is not only possible, but probable.
more at link: http://www.policymic.com/articles/14672/ron-paul-qe3-bernanke-press-conference-live-stream-fed-announces-40-billion-in-monthly-mbs-purchases-zirp-through-2015