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Today's Fed announcement
Wednesday, September 21st, 2011 at 6:23pm. 125 Views, 0 Comments.
With inflation under control, the Fed used its statement to reiterate its plan to leave the Fed Funds Rate within its current range, near 0.000 percent, at least until mid-2013. That's good news for debtors with revolving debt but doesn’t affect long term money like mortgages.
They also launched a market stimulus plan aimed at lowering long-term interest rates to incentivize companies to borrow—which will eventually lead to investment and job creation. They are calling it ‘The Twist’ because they are trading in short-term bonds for long-term ones. They will sell $400 billion in Treasury securities with a maturity of 3 years or less, and use its proceeds to buy the same with maturity between 6 and 30 years. Mortgage market reaction has been positive and…My Account
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