OK, it’s “later” now

May 29, 2009

by Sandy Ikeda

MSNBC reports that “Evidence mounts that recession may be ending”. At the same time, in the Wall Street Journal:

[T]he central bank has been buying mortgage-backed securities and Treasurys. Through programs announced since last fall, it has bought more than $460 billion of mortgage-backed securities and more than $125 billion of Treasury bonds. But the winds turned against the Fed in recent days, as investors worry the government’s approach could lead to inflation.

Time to start crossing that bridge already?

One Response to “OK, it’s “later” now”

  1. Bob Murphy Says:

    Exactly! Now we’ll see how “naturally” these open-market operations will all unwind. Does anyone really think the Fed’s balance sheet will get cut in half this year?


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