The Fed announced monetary policy at 12:30 PM EST today. For those who were paying attention and understand both Bernanke and the predicament we are in, there wasn’t much of a surprise. The Fed will boost QE with $45 Billion in monthly Treasury purchase and continue to buy mortgage bonds to the tune of $40 Billion / Month, for a total of $85 Billion. Of course, rates will continue to stay low as long as the Jobless numbers remain above 6 1/2% and inflation (the official, massaged government figure that is) remains at 2 1/2% or lower.
Here are the Fedlines courtesy of ZeroHedge:
*FED BOOSTS QE WITH $45 BILLION IN MONTHLY TREASURY PURCHASES
*FED TO KEEP BUYING MORTGAGE BONDS AT PACE OF $40 BLN PER MONTH
*FED SAYS MONTHLY PURCHASES TO TOTAL $85 BLN
*FED ADOPTS ECONOMIC THRESHOLDS FOR POLICY TIGHTENING
*FED: RATES TO STAY EXCEPTIONALLY LOW WITH JOBLESS ABOVE 6.5%
*FED: RATES TO STAY LOW WITH INFLATION SEEN AT 2.5% OR LESS
It really isn’t that difficult to figure out. Gold and Silver prices traded higher immediately after the release. Watch the Silver Spot Price and the Gold Spot Price for reaction to the Fed’s announcement, as well as upcoming reaction to Fed Chairman Ben Bernanke’s jawboning later today at 2:15 PM EST.
8:20 PM EST Update: Looks like the metals have reversed post-Fed gains now. Another opportunity for stackers to accumulate more physical.