The Federal Reserve announced its long-anticipated next round of quantitative easing, QE3.
“The Federal Reserve launched another aggressive stimulus program on Thursday, saying it will buy $40 billion of mortgage debt per month and continue to purchase assets until the outlook for jobs improves substantially. (Fox)”
This is a commitment by the Federal Reserve to an open-ended, unlimited QE3--to the tune of $40 billion per month--until they push the economic string long enough to tighten it.
I'll admit I'm surprised it took them this long to do another round of quantitative easing. I predicted in...