Tuesday, August 10, 2010

The Fed Acknowledges Economic Recovery Has Slowed

From The NYT:
WASHINGTON — Acknowledging that the recovery has slowed, the Federal Reserve on Tuesday announced that it would use the proceeds from its huge mortgage-bond portfolio to buy long-term Treasury securities.

By buying government debt, the Fed is taking an unmistakable step to maintain the large amount of money that it pumped into the economy, starting in 2007, to prop up the financial and housing markets.
From CalculatedRISK: don't worry about rates...including mortgage rates.  

And from BI: The CHARTS the Fed is using.

1 comment:

Hal (GT) said...

And then the Congress turned around and spent all that money on saving teachers and firefighters.

Essentially the FED really hasn't changed the pattern of their managing of the economy. More QE. Inflation can't be far behind. What was interesting to me is how gold spiked after the announcement. I was watching it with ExactPrice and saw the spike in real time. It was intriguing.