Fed Announces It Will Buy $600B In Treasuries

Today the Fed announces it will buy back $600 billion in Treasuries, a nuanced effort that aims to stimulate the economy by lowering interest rates.

The plan relies on reinvesting monies it’s making off all those crummy mortgages it bought into buying back Treasury Bonds. Part of the hoped-for effect is that if lower long term interest rates fall, homeowners will have incentive to refinance into cheaper mortgages.

Fed Will Buy $600 Billion in Debt, Hoping to Spur Growth [NYT]