Fed to pump another $1 trillion into U.S. economy

IHT ^ | 3/18/09 | Ed Andrews

[pissant]

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WASHINGTON: Saying that the recession continues to deepen, the U.S. Federal Reserve announced Wednesday that it would pump an extra $1 trillion into the economy by buying mortgage-backed securities and long-term Treasury issues.

"Job losses, declining equity and housing wealth, and tight credit conditions have weighed on consumer sentiment and spending," the Fed said, adding that it would "employ all available tools to promote economic recovery and to preserve price stability."

As expected, the Fed kept its benchmark interest rate virtually at zero. But in a surprise, it drastically increased the amount of money it will create out of thin air to thaw out the still-frozen credit markets that have cramped lending to consumers and businesses alike.

[RocketMan1]

I live in So California and for about the last hour or two the air smells real bad anyone know whats going on? its horrid

Has Barry Sotero arrived in SoCal for his improv event with Jay Leno? THAT could be what you're smelling.

[mojito]

We're going to have Agentina-like inflation in six months.

Welcome to the third-world everyone.

That money you still have in your 401-K will soon be worth even less.

By the time he's finished, the great 0 will have destroyed something like 3/4ths of the value of US assets.

[jveritas]

The Chinese rulers want to feed their people and hence they are not going to spend their cash money on Treasury bonds. They are going to have food riots soon. They are in much worse shape than most people think. To begin with 90% of the Chinese live in abject poverty that we cannot even imagine here in the US. Now with this world wide deep recession they are suffering more than anyone imagine.

[Sandy]

Question... I was planning on buying a house before the Dec. 1st tax-credit expiration date. Am I correct in thinking that with inflation looming, it's best to buy as soon as possible?