Ben Bernanke committed to a third round of quantitative easing. The Fed will buy mortgage-backed securities through a program called QE3.
Today, Ben Bernanke announced that the Fed would launch another round of $40 billion dollar a month quantitative easing, a decision that analysts expected after his pessimistic appraisal of the recovery in Jackson Hole last week. Bernanke’s not only doubling down on quantitative easing, but, unlike in past rounds, the program will be open-ended. The Fed’s pledged to continue purchasing until the recovery strengthens.
His decision a move towards our proposal in Millions to the Middle for a change in Fed policy: