The Federal Reserve has more than doubled the rate of its net bond-buying and set guidelines for interstate near zero. As expected, the central bank will, through what some are calling QE4, create $85 billion a month by buying treasury bonds as well as mortgage-backed securities, up from its current pace of $40 million in so-called quantitative easing.
$85 billion a month adds up to $1.02 trillion over 2013, adding to the more than $2 trillion in assets bought since the start of the crisis. The extra QE will replace the expiring Operation Twist, which was a program for lowering long-term rates by selling short-term bonds. With this amount of nonstop manipulation, it's no wonder that many investors have turned away from the markets. Are the markets up or down on their own or are they like puppets tied to strings that are being manipulated by the Fed?
At any rate, according to ... Log in or subscribe to continue reading.
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