U.S.stocks shot up sharply in midday trading after investors cheered the Federal Reserve's move to launch a new round of steroid-like stimulus in an effort to invigorate the slow-growing economy and jumpstart a weak job market.Believe me, the GOP does not want to hear any of this. Buying bonds at 40B a month should be a serious boost to the economy.
Heading into the closely-watched meeting the consensus on Wall Street was that the Fed would launch a third round of bond buying, an unconventional policy known as "quantitative easing," or QE, in an effort to keep interest rates low and spark more business activity, boost confidence and bolster hiring by businesses.
And the Fed delivered, announcing that it would purchase mortgage backed bonds at a rate of $40 billion per month.
The Fed's aggressive moves pretty much send the message that it will continue to assist the economy And that was met with relief by market participants, says Frank Fantozzi, president and CEO at Planned Financial Services in Cleveland, Ohio.
Expect a serious denouncement by Romney and Crew. Full story, here.