Moody Eye View

The Federal Reserve fulfilled expectations of more stimulus for the faltering economy, taking aim now at driving down mortgage rates until an improvement in unemployment that the central bank says will be a problem for several years.The Fed said it will buy $40 billion of mortgage-backed securities per month in an attempt to foster a nascent recovery in the real estate market.The purchases will be open-ended, meaning that they will continue until the Fed is satisfied that economic conditions, primarily in unemployment, improve.

By doing QE3, he has admitted that QE1 and QE2 have not been beneficial. Otherwise, there would be no need for QE3,” said Michael Pento, president of Pento Portfolio Strategies. “If the unemployment rates stays elevated and inflation exceeds his 2 percent target, what is his next move?”

Ben Bernake does September surprise with infinite money pump in an effort to put wind beneath Presidents wings..

Tags: Ben Bernake, Obama, Quantitative Easing 3

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