Fed announces election year stimulus
September 13th, 2012
12:59 PM ET
2 years ago

Fed announces election year stimulus

(CNNMoney) - The Federal Reserve announced plans to unleash more stimulus Thursday, in its third attempt at a controversial program to rev up the U.S. economy.

The policy, known as quantitative easing and often abbreviated as QE3, entails buying $40 billion in mortgage-backed securities each month. The end date remains up in the air, as the Fed will re-evaluate the strength of the economy in coming months.

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Filed under: 2012 • Ben Bernanke • Federal Reserve
soundoff (22 Responses)
  1. DJ

    Bernanke will do anything he can to get obama reelected since Romney already said that Bernanke is fired if he gets elected.

    September 13, 2012 01:13 pm at 1:13 pm |
  2. K DOG

    The housing market needs bank cooperation to correct, thats why it is not making progress like it could. ive been through the whole nine yards, plus, and i have doubts about this, the only winners last time were the banks. now they are even bigger. who runs bartertown?

    September 13, 2012 01:14 pm at 1:14 pm |
  3. Rick McDaniel

    QE3, we all knew it was coming.......because Obama has spent totally beyond our means!

    September 13, 2012 01:14 pm at 1:14 pm |
  4. Fair is Fair

    QE3... that's just freeking wonderful. Keep an eye on inflation and interest rates now.

    September 13, 2012 01:31 pm at 1:31 pm |
  5. truth hurts

    if obama is re-elected, in 2016 we'll see QE12, and nothing will have changed for the better. maybe even stimulus package 5, 6 and 7. It is the definition of insanity, right here for all to see.

    September 13, 2012 01:33 pm at 1:33 pm |
  6. Jack Moss

    More borrowing, more spending, more printing money we don't have. Beneke just showing what 4 more years of O will be like. Debt, debt, debt.

    September 13, 2012 01:34 pm at 1:34 pm |
  7. GI Joe

    I thought he was a Bush republican?

    September 13, 2012 01:35 pm at 1:35 pm |
  8. Sniffit

    Let the conspiracy theories commence!

    September 13, 2012 01:40 pm at 1:40 pm |
  9. Four and The Door

    The central bank's main objective is to lower interest rates and mortgage rates in particular. By keeping rates low, the Fed hopes to fuel more spending and eventually, more hiring.
    _________________________________________________________________________________________________
    So for all of you retired seniors, just hang in there for a couple more years getting next to no interest on your retirement savings while the Fed fixes the housing market. It hasn't worked yet but thank you for sucking it up while they extend it a couple more years. And I am sure Obama appreciates your vote for him in November anyway.

    September 13, 2012 01:47 pm at 1:47 pm |
  10. Jon

    so in reality ... the Fed Reserve just committed to going an additional $40 billion per month in debt

    September 13, 2012 01:57 pm at 1:57 pm |
  11. truth hurts

    The Fed has been trying to stimulate the economy for over three years now, and has exhausted its usual tool by keeping interest rates near zero since late 2008. Quantitative easing is an unconventional way of trying to lower rates further.
    Still, the Fed is not satisfied, given that the unemployment rate has remained above 8%.
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    this clown has to go. i guess he thinks it was just a fluke that this hasn't worked the first 2-3 times. we have absolute morons running our government and economy. people, if this country doesn't get reality based fast we are doomed. imbeciles like this guy and obama think they can fiddle and tweak and manipulate the economy like sorcerers but all they have succeeded in doing is tying it in knots. it is why they have lost the confidence of the people and people are refusing to participate in this ongoing manipulated economic disaster.

    September 13, 2012 01:58 pm at 1:58 pm |
  12. thetruthandnothingbutthetruth

    @ DJ
    I thought Bernanke was a Bush Republican!

    September 13, 2012 02:00 pm at 2:00 pm |
  13. truth hurts

    Jon - so in reality ... the Fed Reserve just committed to going an additional $40 billion per month in debt
    ================================================================================
    yes, on top of the $120 billion a month we are already going into debt. can you say $2 TRILLION yearly deficit?! fasten your seat belts kiddies and enjoy the ride. they just pushed the pedal to the metal and the car is sailing over the cliff. you'll just experience one small bump when we make reach land again. not to worry...

    September 13, 2012 02:03 pm at 2:03 pm |
  14. RealityBites

    Economists have already said another round(QE3) would have little if no impact on the economy.
    Its like shooting a water pistol at a forest fire.., except that this water pistol is loaded with IOU's for your children.

    September 13, 2012 02:07 pm at 2:07 pm |
  15. truth hurts

    and here i thought obama was the most dangerous, clueless person in the country. bernanke may have just usurped the crown.

    September 13, 2012 02:11 pm at 2:11 pm |
  16. Rudy NYC

    truth hurts – wrote:

    Jon – so in reality ... the Fed Reserve just committed to going an additional $40 billion per month in debt

    yes, on top of the $120 billion a month we are already going into debt. can you say $2 TRILLION yearly deficit?!
    --------------------------------
    FACT: The annual deficit for FY2012 will finish at a little over $1 trillion.
    FACT: The $120 billion figure cited above is false. It's a result of fuzzy math and right wing derivatives.

    September 13, 2012 02:12 pm at 2:12 pm |
  17. amf140

    I guess we won't be happy until we "stimulate" our economy as much as Japan has theirs. Now that has really worked. I need to know the manufacturer of presses that print our money – that's a company to buy stock in. For some reason, the definition of INSANITY keeps popping into my head. And these guys are supposed to be smart.

    September 13, 2012 02:20 pm at 2:20 pm |
  18. Bill C.

    We are doomed – this will not work,..for long. Time to pay the piper, just around the corner. God help us.

    September 13, 2012 02:24 pm at 2:24 pm |
  19. PaulCat

    .........or congress can just pass Obama's jobs plan.

    September 13, 2012 02:24 pm at 2:24 pm |
  20. Fair is Fair

    Jon

    so in reality ... the Fed Reserve just committed to going an additional $40 billion per month in debt
    ------
    No, Jon... it's really far more complex than that.

    First of all, the Federal Reserve is about as "federal" as "Federal Express"... the Fed is a conglomerate of 12 privately owned banks in no way tied to or responsible to the federal government. So nice that we've allowed them to dictate the monetary policy of our country, eh?

    Second... the federal funds rate is at, for all intents and purposes, ZERO. It cannot go any lower using "natural" economic policy. So the fed basically has decided to print $40 billion more, per month, and inject it into the economy. So what, you say? Well, there's no real value to those $40 billion just printed, and in essence they just water down the value of the dollars that are already in circulation.

    Conclusion? Inflation. The most unfair "tax" of them all, in that it hits those who can least afford it the most.

    September 13, 2012 02:26 pm at 2:26 pm |
  21. Four and The Door

    truth hurts
    and here i thought obama was the most dangerous, clueless person in the country. bernanke may have just usurped the crown.
    _____________________________________________________________________________________________
    They work as a team. Obama drives the debt up and Bernanke makes the debt look less devastating temporarily with interest rate manipulation. Yes, this is a very short term answer. And one of our greatest long term national problems.

    September 13, 2012 02:27 pm at 2:27 pm |
  22. Ed1

    Our tax dollars at work thanks for nothing again throwing good money after bad your answer to everything spend what you don't have.

    Great example to set for the young since they will have to pay for it.

    September 13, 2012 02:35 pm at 2:35 pm |