Bob Rodriguez Commentary: ALL IN!

The Fed initiated QE3 today by announcing its plan to buy $40 billion per month of agency mortgage-backed securities, finishing Operation Twist by year end and keeping the federal funds rate at 0 to ¼ percent through at least mid-2015. Additionally, “If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability.” With this statement, the Fed has gone “ALL IN!”