Ben Bernanke wisely decided to continue to expand operations at the Fed. The Fed will continue to buy $40 billion of mortgage-backed securities each month as well as $45 billion of long-dated Treasuries as operation twist expires.
http://blogs.wsj.com/marketbeat/2012...y-stocks-rise/The Fed kept short-term rates near zero, and they will stay this low as long as the unemployment rate remains above 6.5% and inflation stays under 2.5%, the Fed said.
You don't want to be on the wrong side of Fed policy. Bernanke is telling us that:
1) Stocks are great investments.
2) Junk bonds are great investments.
3) Cash is cheap.
4) The Fed is committed to returning the US to economic growth, which means we all benefit.