If you haven’t read about the news about the US Federal Reserves releasing QE3, announced on the 13th of September a week ago, here’s a short summary coming from Wikipedia,
QE3 was announced on September 13, 2012. In an 11-to-1 vote, the Federal Reserve decided to launch a new $40 billion a month, open-ended, bond purchasing program of agency mortgage-backed securities; to continue until at least mid-2015. According to NASDAQ.com, this is effectively a stimulus program which allows the Federal Reserve to print $40 billion dollars a month for an unlimited amount of time. Ratings firm Egan-Jones said it believes the Fed’s decision “will hurt the U.S. economy and, by extension, credit quality.” As a result the firm once again slashed the U.S. bond rating bringing it down to AA-. Federal Reserve chairman Ben Bernanke acknowledged concerns about inflation.
With QE3, the Feds are going to inject another $40 billion (printed of course) to buy back mortgage securities in the States, to allow Americans to have an improved lives by improving the job data and consumerism from the possible enhanced property market. They are guaranteed on the low-interest rate as well till mid of 2015 (I wonder whether Bernanke will still be chairman by then)