QE Has Become a Foregone Conclusion
On Thursday the Federal Reserve announced its most aggressive monetary action since 2008. The move marks a significant departure from the central bank's prior actions, and it is also more aggressive than what most commentators had expected. Here are my views.
The details of the program are as follows. Each month, the Fed will be buying an additional $40 billion worth of agency-backed mortgage bonds. These purchases will start immediately, and will be concentrated in new-production mortgages. Combined with the Operation Twist buys, this brings the total monthly purchases up to $85 billion, or approximately half of average gross monthly mortgage-backed security production. (Net production is near zero)....622 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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