Quantitative Easing 3 - Federal Reserve to buy more debt

[pmaitra]

Federal Reserve to buy more debt to boost US economy

Ben Bernanke recently spoke of the benefits of "non-traditional policies"

The US central bank has announced it will resume its policy of pumping more money into the economy via so-called quantitative easing.

The Federal Reserve said it will buy "additional agency mortgage-backed securities at a pace of $40bn (£25bn) per month".

The central bank also said it could increase the size of its purchases if the economy does not improve.

The economy is a pivotal issue in this year's US presidential election.

Interest rates in the US have been close to zero for several years now, and the Fed againt kept them at below 0.25%.

Read more: BBC News - Federal Reserve to buy more debt to boost US economy

 

[pmaitra]

More inflation on the way. This is the miracle of the confounded and mathematically absurd Fiat Currency.