Wednesday, 18 March 2009

Federal Reserve Keeps Target Rate Range Unchanged, Plans Purchasing $300 Billion of Longer-Termed Treasuries

Bill Gross, the head of bond powerhouse Pimco, the same that bets against the government and manages sme portfolios for the TARF, has said buying longer-termed Treasuries isn't as good and effective a government policy as bailing out banks and repurchasing mortgage-backed notes. Maybe, I don't really know -- the thing is the Fed today announced a programme to repurchase $300 billion of long term Treasury debt. This will prop up the government debt holdings of Pimco as well as China. Ah! And Pimco will keep buying ... at good prices.

The Fed kept the fed Funds rate range between 0 percent and 0.25 percent. Please click on Link 1 for Bloomberg News' transcription of the FOMC decision, and Link 2 for the story by Reuters.

Link 1

Link 2

No comments:

Post a Comment