Federal Reserve Running Low on Ammo
August 18th, 2009Via: Reuters:
On Monday the Fed announced it had purchased another $7 billion worth of Treasuries under its quantitative easing program. Readers will recall that in last week’s FOMC statement, the Fed said it was extending the Treasury purchase program by a month, to the end of October, while maintaining its total purchase commitment of $300 billion.
After today’s $7 billion purchase, the Fed has just $40 billion left. Spread out over the next 10 weeks, that doesn’t give it very much ammo. To date, purchases have averaged over $12 billion per week. That is set to fall to $4 billion.
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