The Federal Reserve bought $7.3 billion worth of U.S. Treasuries Friday as it started a second round of quantitative easing meant to stimulate the nation's economy, media reports indicate.

With the government's fiscal stimulus expired, and with little hope of additional stimulus spending being approved by Congress in the near future, the Fed had to take action in an attempt to reduce the high U.S. unemployment rate and avert deflation.

But with benchmark interest rates near zero, and after an earlier program to buy $1.7 trillion worth of securities failed to reduce unemployment, the Fed announced last week its unconventional monetary easing plan of buying $600 billion worth of longer-term bonds through June. The plan has been highly criticized.

In its first day, the Fed acquired 16 of the 24 securities maturing from November 2014 through April 2016 that were listed for possible purchase on the Federal Reserve Bank of New York's website, Bloomberg reported. And according to Reuters and CNBC, after the Fed completed its purchases Friday morning, prices of U.S. Treasuries hit session lows.

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Sonny

What a farce!!! Fed Reserve buying treasuries to help unemploymnet..........you have to be joking. They are buying treasuries because no one else will.......Ever heard of monetizing?????

November 14 2010 at 2:19 PM Report abuse rate up rate down Reply
Samir semaan

While the national economy will be staggering and very slow in the next five month due to every months of forclosures and the bad news that demand is not picking up and the political climate what the president must be concerned about is to provide unemployment benefit for americans who lost or going to lose their jobs and get the budget for that until the end of this current year if he has to extend the tax cut for the middle class and small business owners so people will not go hungry empty stomack. And by next year when the republicans have the majority he can ask to extend unemployment benefit for complete one year and the tax cuts for the rich be extended for one year because forclosures will be the norm for the 2 first quarters and many people will lose their jobs.

November 13 2010 at 10:34 PM Report abuse rate up rate down Reply
sfamilyent

QE2 is not going to provide a significant positive change to our economy, measured by GDP or employment; may provide some growth in stock values; and may increase the inflation rate. The idea that further increasing the money supply and reducing borrowing rates will somehow create more jobs and increased consumer consumption seems to me to be another twist on supply side economics and the trickle down theory which historical data shows was not successful. While I am convinced that the employment situation will improve, it will do so through more low paying part time jobs, as employers find more ways to avoid providing any long term benefits and as potential workers become more willing to accept less. The key to creating an environment of a long term stable economy is to correct the trade imbalances that we have with other countries that have adopted export based protectionist economic policies and that target our consumer market for their economic growth. If we adopted trade policies that made domestic production of goods competitive with the subsidized production off-shore, businesses would relocate facilities within our borders, creating more jobs, and our economy would grow.

November 13 2010 at 8:50 AM Report abuse rate up rate down Reply
chrishuff2

Would someone PLEASE get out the white cane and get Obama OFF STAGE! He's been nothing but a fraud to this nation and all it stands for. Go away Nobama.

November 12 2010 at 9:27 PM Report abuse rate up rate down Reply
bootjack

Barry Soetoro and George Soros are playing a Global game. Masta Soetoro was told to go take a "hike" for a reason. The end times for Christians is at hand. Are you ready?

November 12 2010 at 7:38 PM Report abuse +1 rate up rate down Reply
fasteddie1257

Stock up NOW..The price of living is going to skyrocket. Gasoline is on the rise, food has been on the rise. Barry spent 2 billion to get kicked to the curb. What a monstrous Administration we have.

November 12 2010 at 7:06 PM Report abuse +4 rate up rate down Reply
imme534333

Now would be a good time to buy stocks.The FED is keeping the interest at very low levels. This, quantitive easing, gives the banks more money to lend. More money supply dilutes the value of the dollar. Every worker in the United States is now working for less pay because each dollar will buy less goods and services. That lowers the cost of goods and services we sell overseas and should increase exports, just as the higher price paid for imports will cut into demand. With low interest rates there are few options left were to put your money. So of course money will flow into stocks and push the price up.

November 12 2010 at 2:29 PM Report abuse rate up rate down Reply
1 reply to imme534333's comment
rh1216

Nice try but Obama stands in the way of a recovery...he fails in each and every case taking the anti business pro class warfare stance and his Fed is killing the us dollar....get ride of him , Biden, and Pelosi and MAYBE we can grow our way out of this mess and PLEASE Comrade Borat take your First Lazy with you.

November 12 2010 at 4:47 PM Report abuse +4 rate up rate down Reply
bigtruckerman

Now would be the time to dump stocks, the FEDS are printing money to pay off their bills. This in turns devalues the dollar which in turn raises the price of comodities like oil. Inflation will kick in then the FEDS will try to start raising the interest rates which will drive the stock market even lower. We are in the same situation as Germany was in the 1930's, except for a couple of things. NAFTA and CAFTA are destroying the manufactoring jobs in the states and China is manipulating the YUAN to keep their exports cheap. We are in a downward spiral until the manufactoring jobs come back here. As I have said before if congress does not get the job done in one year recall them all of them, don't wait till the next election.

November 12 2010 at 1:56 PM Report abuse +5 rate up rate down Reply