Thursday, September 22, 2011

Pictorial representation of the US Quantitative Easing program

The US FOMC announced further quantitative easing activity today; it's going to sell about $400B of treasuries with maturities less than 3 years, and buy about $400B securities with maturities greater than 6 years. This will push down long term rates at the expense of short term rates. Economically it may impact on investment decisions at the margin, but the success of the program remains to be seen.

For your convenience a pictorial representation of the Fed's quantitative easing program to date is included below:


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