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.
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?