QE3 – Is The Federal Reserve Letting Americans Know The Depth Of The Economic Problems?

On September 13, 2012 the Federal Reserve (Fed) announced a third round of money printing, or Quantitative Easing 3 (QE3).  This round of money printing has a dramatically different twist and message attached to it, as it has no expiration date or limits.  Clearly, the Fed’s stated objective of a sound currency is now taking a back seat to stimulating the economy.  Today, the question remains whether or not this latest attempt to stimulate the economy will work, or will it be remembered as just another desperate attempt by the Fed to save a broken system.

The outlined plan of QE3 states that the Fed will purchase at least $40 billion worth of mortgage-backed-securities each month until unemployment numbers are satisfactory.  It is interesting that they have not defined what a satisfactory level of unemployment is, but based on historical statements released by the Fed, they are likely looking for levels somewhere between 5% and 7%.  Many are calling this QE program, QEternity due to the lack of end date and limits on the program. ...Financial Advisor