Fed to Buy U.S. Debt, Saying Recovery Has Slowed
The headline should read, “Fed to Prints more Money, Saying Recovery Has Stalled”
This isn't printing more money. It's taking existing money that exists as principal payments on toxic mortgages and using it to buy US Treasury securities. There is no new money allocated in doing this.
The funny part is that the amount of principal payments on Fannie and Freddie agency debt owned by the Fed is effectively zero.
This is all a ruse.