Free Republic

Let me see if I understand this correctly.  QE4 is announced and it was declared that bonds will be purchased for as long as the eye can see or until we achieve an unemployment rate of 6.5%.  Several weeks later, the majority of Federal Reserve officials announced that it would be “appropriate” to end QE4 prior to the end of 2013 or by the end of 2013.  So, what the heck happened to 6.5% unemployment?  The Fed, for almost 100-years, has operated with two mandated objectives, namely stable prices and full employment.  In order to achieve those goals, they can...

The Federal Reserve fulfilled expectations of more stimulus for the faltering economy, taking aim now at driving down mortgage rates. The Fed said it will buy $40 billion of mortgages 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. There's strong hints that they'll do Treasurys next," Joe LaVorgna, chief economist at Deutsche Bank Advisors, said in a phone interview from London."They're pulling out all the stops to try to get this...