Federal Reserve to unleash QE2 and fund the US deficit in coming months
Oct 31st, 2010 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
The Federal Reserve will conclude a two-day meeting of its rate setting Federal Open Market Committee (FOMC) on Wednesday and it's expected to unleash its latest program of quantitative easing -- nicknamed QE2 - - which is effectively money printing to boost the flagging recovery and raise inflation. The central bank is expected to buy about $100bn of bonds from the market between future FOMC meetings which is in line with the expected US budget deficit. In effect, the Fed will be absorbing from the market most of the new bonds issued by the Treasury during the timeframe of the new program.