fed buying treasuries
03-19-2009, 04:30 PM
#1
Gets Weekends Off
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Joined APC: Mar 2007
Position: standing-by
Posts: 287
fed buying treasuries
And the stock market soars, interest rates fall, the dollar falls and gold goes up. But what exactly is the U.S. doing? Printing more money to buy their own treasuries? Will that lead to even more inflation down the road? Not sure I understand exactly what they're doing and what it will mean...
03-19-2009, 05:19 PM
#2
With The Resistance
Joined APC: Jan 2006
Position: Burning the Agitprop of the Apparat
Posts: 6,191
It is something of a last ditch effort to give the economy a kickstart, they really can't lower rates anymore since they are near zero. There are inflationary risks involved and the move may not have the desired effect since they are simultaneously trying to sell treasuries and the current low rate is making them unattractive to investors. Clear as mud?
Fed?s treasury-bond gambit: mother of all rescue plans | csmonitor.com
Fed?s treasury-bond gambit: mother of all rescue plans | csmonitor.com
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