S&P 500 QE3 Breakout
S&P 500 QE3 Breakout. The Federal Reserve fulfilled expectations of more stimulus for the faltering economy, taking aim now at driving down mortgage rates.
Home with a reduced price sign. Mortgage rates are near record lows. 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 economy to gain some traction and, most important, to get unemployment down."
Enacting the third leg of quantitative easing will take the Fed's money creation past the $3 trillion level since it began the process in 2008.
Follow us on Facebook
People viewing S&P 500 Videos also viewed:
S&P 500 Videos
Stock Trading Videos
Stock Index Video
Technical Analysis Video