Let the Countdown Begin for QE3

No real surprises, aside from the 3 dissents.

  • The Federal Reserve will use more than $400 billion to try to drive down long-term interest rates, make home loans cheaper and invigorate the economy
  • The Fed announced Wednesday that it will do so by adjusting the makeup of its existing holdings. It will sell $400 billion of its shorter-term Treasurys to buy longer-term Treasurys. And it will reinvest principal payments from its mortgage-backed securities, to help keep mortgage rates at super-low levels.
  • Three members dissented from the decision.
  • With its mortgage-backed securities, the Fed had previously reinvested principal payments into Treasury purchases.
  • In its statement, the Fed noted that the economy is growing slowly, unemployment is high and housing remains in a prolonged slump.
About Mark Hanna 543 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

Follow Mark on Twitter @fundmyfund.

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