Fed Moving To Reflation

This is a very significant move by the Fed. They are going to monetize the U.S. deficit. This is highly inflationary. The dollar is dropping like a rock. Gold was down over 25 bucks and is now trading up 10.30. Stocks which were down big are now up over 100 points. This is a "Hail Mary" pass by the Fed. Got Gold?-Lou

Fed to buy Treasurys in latest bid to restore growth

WASHINGTON (MarketWatch) -- The Federal Reserve surprised financial markets and committed to buy $300 billion in longer-term Treasurys to help the economy recover. The Fed was more pessimistic about the outlook, in a statement released after its two-day meeting.

Officials removed language saying they expected the economy to recover later this year. The Fed tweaked its other credit-easing programs by committing to buy more mortgage-backed securities and agency debt and include more asset-backed securities under a new credit facility starting this week. The Fed repeated that deflation was a risk to the economy. The vote on the statement was unanimous.