Fed keeps $85 billion asset-purchase plan in place

[Roland99]

Source: MarketWatch

The Federal Reserve on Wednesday held its asset-purchase program steady, putting off any decision for tapering until later in the year. By a 9-1 vote, the Fed plans to continue to buy $85 billion a month in Treasurys and mortgage-backed bonds. The central bank pointed to an elevated unemployment rate and said government spending cuts and rising mortgage rates are "restraining economic growth." The Fed said it will wait for "more evidence that progress will be sustained" before it starts to cut its asset purchases. The move surprised economists, who had expected a "tiny taper" in a range of $10 billion to $20 billion. And Wall Street could be unnerved by renewed Fed concerns about the health of the U.S. economy. The Fed, in its statement, sought to reassure investors by noting gradual improvement in the economy over the past year. The bank said it still believes growth will accelerate in the near future

Read more: http://www.marketwatch.com/story/fed-keeps-85-billion-asset-purchase-plan-in-place-2013-09-18

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10-yr Treasury yields dropped from 2.9% to 2.73%

US Stock indices are now up about 0.5%

Dollar index falls to 81.01

[mahatmakanejeeves]

1. I wouldn't want the bubble to burst.

Not like the last one.

And the one before that.

And the one before that.

And the one before that.

And the one before that....

[NoOneMan]

2. Holy schmoly! I wasn't expecting that!

Well, hell, I made the wrong call!

[jakeXT]

3. I saw Sachs and Ritholz talk about 10 billion yesterday and was surprised

David Rosenberg, chief economist and strategist at Gluskin Sheff & Associates, Jeffrey Sachs, a professor at Columbia University, and Barry Ritholtz, CIO of Ritholtz Wealth Management, talk about the outlook for the Federal Reserve after Lawrence Summers withdrew his name from consideration for the central bank’s leadership. They speak with Trish Regan and Adam Johnson on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)
http://www.ritholtz.com/blog/2013/09/bloomberg-video-david-rosenberg-me-jeff-sachs/

[Kolesar]

12. That was really good

Including the facial expressions.

[bluesbassman]

4. Damage has already been done. 30yr fixed rate was at 3.5 no points in April, around 4.5% now.

The only people Bernake and his band of useful idiots at the Fed helped when they spouted off about pulling back was the Bond gamblers. Certainly didn't help the American people or OUR economy. :GRR:

[CountAllVotes]

5. awww

Let them pay for a mortgage just like so many already have. When I got my house, the rates were at 7% and that was a DEAL.

Screw these bastards.

for any of these lying thiefs!

[bluesbassman]

6. OK, so you had to pay 7% so fuck everybody else, is that your position?

And just who exactly are the "lying thiefs" you're playing the violin for? Do you have any idea how scrutinized a mortgage loan application is today? There are no more "stated income" loans. Every bit of information on a loan app is current and verified.

The consumer, i.e. your neighbors, friends (if you have any), and relatives (if they claim you as one) are the "bastards" you wish to be screwed. The banksters and bond traders are laughing all the way to their vacation homes.

[Roland99]

7. I understand the PP's sentiment somewhat

All of these artificially low rates hasn't helped the overall economy. It's just made it cheaper to issue debt.

But, personally, I was VERY thankful to refi even a 5.25% mortgage down to 3.25% this past Dec. If it was at 7% I'd be paying more than $600/mo more. That's practically my food bill each month for my entire household.

[bluesbassman]

8. I agree Roland, the rates are artificially low, but the Fed's actions recently was deplorable.

The economy IS still sputtering and when Bernake and gang floated that trial balloon last spring about pulling back on stimulus support, the result benefited no one but the banksters and bond traders.

[Roland99]

11. I think the Fed has put themselves into a Kobayashi Maru.

[CountAllVotes]

9. That is for the Banksters

They are getting their way as they continue on in their same path, that is WHO.

[Gothmog]

10. If you want to refinance, you need to hurry

I refinanced back in March and reduced my interest rate by 262.25 basis points. Interest rates are up a full 100 basis points since the time of my refinancing. There should be a short window for anyone who wants to refinance