To help support the economic recovery in a context of price stability, the Committee will keep constant the Federal Reserve's holdings of securities at their current level by reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities.1 The Committee will continue to roll over the Federal Reserve's holdings of Treasury securities as they mature.
This will help to increase M1 and M2. However, despite this move towards easing, the markets are still having trouble moving above key resistance areas.
1 comment:
Great news. For all those retirees whose income has been wiped out by the Fed driving short rates to zero you don't have to worry about having to make any spending decisions in the future. Hurray for the printing press. Controlling the price of money below market levels is working wonders for our economy. Keep up the good work Ben!
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