Implications of QE3 and Investment Outlook
Sep17

Implications of QE3 and Investment Outlook

  On 9/13/2012 the Federal Reserve’s Federal Open Market Committee (FOMC) announced it will: • Purchase additional agency mortgage-backed securities (MBS), at a pace of $40 billion per month (quantitative easing). • Extend the average maturity of its existing holdings of securities/Treasuries through to the end of the year. • Reinvest principal payments from agency debt & mortgage-backed securities, back into mortgage-backed...

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Operation Twist 2 – Federal Reserve Shifts Bonds
Sep21

Operation Twist 2 – Federal Reserve Shifts Bonds

On 9/21/2011 the Federal Reserve’s Federal Open Market Committee (FOMC) announced it will: • Extend the average maturity of its existing holdings of Treasuries. • Swap $400 billion worth of shorter-term maturity Treasuries /government bonds with longer-term Treasuries by the end of June 2012. • Reinvest principal payments from agency mortgage-backed debt/securities back into mortgage-backed securities. • Maintain near zero fed funds...

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Federal Reserve Stays The Course & Maintains Decision On Interest Rates
Apr28

Federal Reserve Stays The Course & Maintains Decision On Interest Rates

On 4/27/2011 The Fed announced it will complete its $600 billion of Treasuries by end of current quarter (June 2011), and keep rates low with no rush to reverse stimulus.

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Impact Of The Federal Reserve Buying $600 Billion More In Treasuries By Second Quarter of 2011
Nov04

Impact Of The Federal Reserve Buying $600 Billion More In Treasuries By Second Quarter of 2011

On 11/3/2010 the US Federal Reserve announced it is committing $600 billion to buy more government treasuries/bonds in order to stimulate the weak US economy.  This is the second massively large and unconventional program of quantitative easing (money printing). In the statement released by the Federal Open Market Committee (FOMC) it said that although spending and investment have been rising in some areas in general, it still remains...

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Global Currency Battle Intensifies

The global currency battle has deepened yet again as countries push forward with efforts to resist capital inflows that increase their currencies and undercut the competitiveness of their exports. Thailand imposed a 15% withholding tax on capital gains and interest income from foreign investment in government debt in a bid to curb the Thai baht.  The baht has risen to its highest point since the 1997 Asian financial crisis. The...

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