wealthwire.com / by Brianna Panzica / Friday, November 30th, 2012
The Federal Reserve doesn’t ever seem likely to stop its money-printing and bond-buying.
When it started up its $40 billion-a-month bond purchases in September, it dubbed the program “unlimited,” saying it would continue indefinitely until unemployment had recovered.
No indication on what constitutes “recovered.”
Of course, as it announced this, it was also in the midst of Operation Twist, a $45 billion-a-month long-term Treasury program that’s set to expire this December. But don’t hold your breath, because as always, the Fed maintains the ability to extend this.
The next Fed policy meeting is set to take place on December 11 and 12, and the long-term Treasury decision will be one of the first things on the table.
From the Wall Street Journal:
“A decision not to continue buying long-term Treasurys when Twist expires would be a surprise to markets and that would be counterproductive,” John Williams, president of the San Francisco Fed, said in an interview last week. “It would push long-term rates up and cause financial conditions to be a little less supportive of growth.”