Open Thread: Fed Driving Rates Much Lower

Buy a third of a trillion in treasuries, and watch rates plummet.

That is the Fed’s obvious goal.

The mere announcement sent rates plummeting: Yields on the 10-year note plunged to 2.48% from 3.01% late yesterday. Bloomberg noted this as the biggest decline since 1962.

Not surprisingly, the dollar got whacked and gold rallied.

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Is this a smart idea? Will we see mortgage rates at 4.5% ? What will this do inflation? The Dollar? Gold? Equities? Economic activity?

What say ye?

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