Taken together, the Desk anticipates conducting $850 billion to $900 billion of purchases of longer-term Treasury securities through the end of the second quarter. This would result in an average purchase pace of roughly $110 billion per month, representing about $75 billion per month associated with additional purchases and roughly $35 billion per month associated with reinvestment purchases.Now most articles today only ran the $600 billion and the fact that it was only $75 billion per month and said they were disappointed that it was under $100 billion per month, well I guess they can cheer up they got $110 billion per month. Yah, now our money is worth less (again).
This blog attempts to educate people about how our economy works and to provide updates on what is going on in the economy that may affect them (See personal story at the bottom of the page). Neither this blog nor I are investment advisors, any opinions posted on this site are my own. Please seek a professional investment advisor to fit your personal investment goals.
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Wednesday, November 3, 2010
Fed to Print up to $900 Billion
The federal reserve announced today that it intends to purchase $600 billion in longer-term treasuries by the end of the 2nd quarter of 2011. It also intends to reinvest principal payments from agency debt and agency mortgage-backed securities into longer-term treasuries over that same period of time. The Fed makes the following statement to sum this activity up:
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