Fed announces plan to buy Treasury debt, spur growth

08-10-2010 • McClatchy News

In a statement, the Fed said it would reinvest earnings from maturing mortgage debt into U.S. Treasury debt, with an eye toward keeping long-term borrowing rates low. The move aimed to reassure investors who are hoping the Fed will do more to spur the economy and observers who fear that more debt will ignite inflation.

1 Comments in Response to Fed announces plan to buy Treasury debt, spur growth

Comment by Olde Reb

Entered on: 8/11/2010 8:59:41 AM

That is another way of saying that the toxic MBS the Fed took from the banks and gave T-securities will be moved from the ledgers of the Fed and returned to the market at full value. The taxpayers will pony up to pay for the T-securities by inflation. The NY banks and Wall Street will be rescued by the Fed and the people will pay for the new whip.

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