More easing by the Fed

The Fed acts, just

Operation Twist

Jun 20th 2012, 17:06 by G.I. | WASHINGTON

THE Federal Reserve has once again eased monetary policy to boost the flagging recovery, announcing a modest extension of "Operation Twist", that is the purchase of long-term bonds financed by the sale of short-term paper. The stockmarket initially sold off, but has bounced back as of this writing.

In its statement, the Fed said:

The Committee expects economic growth to remain moderate over coming quarters and then to pick up very gradually. Consequently, the Committee anticipates that the unemployment rate will decline only slowly toward levels that it judges to be consistent with its dual mandate. Furthermore, strains in global financial markets continue to pose significant downside risks to the economic outlook.

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Comment: Fed officials won't rest until they'll have finally fabricated hyperinflation.