There is quantitative easing and then there is quantitative easing. Confused? So are some market observers.
After Ben Bernanke's speech last week regarding the end of Quantitative Easing 2.0, the FOMC Committee inserted a small caveat that it will continue to buy Treasuries with proceeds from the maturing debt it currently owns. The policy is necessary to keep interest rates artificially low. The irony here is that the yields on Treasurys remains very low even without Federal Reserve intervention b/c of widespread, lingering fears about debt bubbles in Europe, political uncertainty in the Middle East, and tightening in China.
The Bottom Line: The Federal Reserve will continue buying Treasuries after the end of QE 2.0 until it decides not to anymore.
- The Continuation of Quantitative Easing
- Chinese Government Claims It Isn't Speculating on ...
- India Will Join China as a Net Corn Importer
- McKinsey Health Insurance Report Attracts Controve...
- Chinese Food Prices Rise on Flooding
- Taking a Closer Look at Brazilian Growth
- Chinese Investment in Argentina Continues to Grow
- Warning Signs Flash in Indian and Brazilian Govern...
- CFTC Delays Dodd Frank Derivatives Ruling
- Modern Indian Growth: In Spite of Government - Not...
- Hedge Fund Investments in African Land are Leading...
- Indian Ministry Continues to Defer Wheat Export Ba...
- US Financials, Dodd-Frank, and Basel III Leverage ...
- Another Look at the Chinese Shadow Banking System
- Emerging Market Inflation Indexed Bonds
- Australian Government Bans Mining in Queensland
- ▼ June (16)
- ► 2010 (53)
- ► 2009 (473)