Thursday, 4 November 2010

Ben purschases 600 bil of securities - An experiment

Bơm 600 tỷ, vậy là hơn consensus forecast 100 tỷ, nhưng thấp hơn Goldman Sachs forecast too much.

Bernanke’s Fed, constrained by a key interest rate near zero and bound by a Congressional mandate to reduce unemployment, yesterday said it would buy $600 billion in Treasury securities through next June in a bid to further reduce long-term borrowing costs and keep prices from falling.

The dollar weakened and stocks rose as the quantity of purchases exceeded the expectations of some investors. Bernanke is gambling he can push down a jobless rate that has been stuck above 9 percent since the recession ended in June 2009 and encourage investors to take more risk without igniting an inflationary surge or fueling asset-price bubbles.

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