NEW YORK ( TheStreet) -- The Federal Reserve expanded its money madness on Thursday. The Federal Reserve Open Market Trading Desk has been instructed to purchase agency mortgage-backed securities at a pace of $40 billion a month, with a prorated amount of $23 billion being bought during the remainder of September.This quantitative easing program, or QE3, is open-ended and without a ceiling to the total expansion of the Fed's balance sheet. Operation Twist, where the Federal Reserve extends the maturities of its holdings will continue until the end of the year at $35 billion per month. The mortgage-backed securities program and Twist thus total $85 billion per month through December.
Bernanke Does the Expected and Then Some
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