Sources colorado department of labor and employment

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Unformatted text preview: nding costs down. By purchasing longer maturity treasuries, it hopes to keep the rate on the 10-year treasury low. Additionally, the Federal Reserve has also stated that it will take principal cash flows from its mortgage holdings and reinvest them in the mortgage market rather than in treasuries. Again, this is driven by a desire to keep mortgage funding costs down. This has been the response of the Federal Reserve to the end of its second round of quantitative 2012_Financial_Activities_Employment_110711 easing (QE2). Operation Twist is not quite a third iteration of quantitative easing, although there is speculation that round three is in the queue. For at the November Federal Open Market Committee (FOMC) meeting, there was one dissension. However, this dissension was not like those voiced by the now-retired Kansas City Federal Reserve President Hoenig calling for restraint. No, this dissension was a call for more policy accommodation by the Fed, requested by Chicago Federal Reserve President Evans. Why the obsession with supporting asset values, notably, real estate values? Because deflation is still a...
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This note was uploaded on 02/11/2013 for the course MGMT 231 taught by Professor Yu during the Spring '13 term at Bauder.

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