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 he would launch another round of $40 billion dollar a month quantitative easing, a move that was expected after his pessimistic appraisal of the recovery in Jackson Hole last week. Not only is Bernanke doubling down on stimulus spending to boost economic growth, but, unlike in past rounds of quantitative easing, the program will be open-ended. That entails the Fed commiting to continue purchasing until the recovery improves.
His decision marks a step in the direction proposed in Millions to the Middle, a recent Demos report:
