Read more on this subject: Federal Reserve
News Story Source: https://www.lewrockwell.com by Joseph T. Salerno
The Fed put its (fiat) money where its mouth is by announcing a host of programs. It cut its target interest rate by 1% to zero and re-instituted quantitative easing, pledging to purchase $700 billion worth of Treasury securities and agency mortgage-backed securities over the coming months. This is in addition to $1.5 trillion of temporary overnight and term repurchase operations it announced two days ago. Separately, the Fed issued a coordinated announcement with a number of other central banks, including the Bank of England, Bank of Japan, and the ECB that the interest rate on dollar swap arrangements would be cut by 0.25% and 84-day maturity swap lines would be added to the current 7-day dollar swap lines. In yet another announcement , the Fed slashed the rate at its discount window by 1.5% to 0.25% and its reserve requirements for all banks and other depository institutions to 0%.
In the wake of these announcements, some commentators questioned whether the Fe
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