The Fed and Ben Bernanke came out today and announced the figure that everyone has been anticipating…. $600,000,000,000.00 or $600 Billion will be used to purchase longer term treasuries ranging from 1.5 to 30 years over the next eight month’s leading in to the second quarter of 2011.
Monthly purchases are planned to the tune of $75 billion a month in varied treasuries. The Fed claims that inflation expectations are stable, in spite of those that are promising otherwise.
The Fed gave the markets what it was expecting as most of this dollar figure has already been baked in to the market since the news began swirling that more QE was definite.
The fact that more QE does not include the “T” word(trillion) shows a little more confidence in the progress of the American economy. Unemployment is still high and jobs are not there just yet, but the American consumer seems to be gaining some confidence, or they are just sick and tired of the doom and gloom.
The Bank Of England is next up for a decision on more QE for it’s sluggish economy.