Federal Reserve Announces Open Ended QE III

Interest rates will stay in current range through 2015 and the Fed will be buying $40 Billion worth of mortgage backed bonds per month...until morale improves.

This is what makesthe biggest difference: the Fed isn't announcing a limited amount of purchases. It's an open-ended program to buy bonds until the economy improves. From the statement: "If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability."

Fed Chairman Ben Bernanke used to be jokingly called "Helicopter Ben". He's certainly living up to that name, though it should be updated to "Drone Ben".

As always my question is, if running up tremendous public debt and inflating the currency is the key to prosperity, why isn't Zimbabwe considered the most prosperous nation on Earth?

James Pethokoukis reacts.

What Romney should say: Is this Obama's "New Foundation" economy? Built on trillion dollar deficits and cheap money?

We are so screwed.

posted by DrewM. at 12:46 PM

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