QE(N) Does Not End Here!

QE(N) will not end in June. It simply morphs into something less obvious. Why initiate another “shock and awe” bond buying program when maturing debt reinvested into Treasuries can do the heavy lifting without unnecessary political attention in the future?

Headline: Fed signals $600B bond program to end in June

The economy and job creation have strengthened enough for the Federal Reserve to end its $600 billion Treasury bond-buying program in June as planned, the Fed signaled Wednesday.

Ending a two-day meeting, the Fed made no changes to the program. The decision was unanimous. The bond purchases were intended to lower loan rates, encouraging spending and boost stock prices. But critics worried that the purchases would feed inflation.

The Fed downplayed inflation risks. It acknowledged a spike in oil prices, but concluded that the pickup in inflation will be temporary.

Source: news.yahoo.com