This just came to my attention, however tardy. The story was broken today by Reuters and then carried by CNBC.
The Federal Reserve plans to launch a program to buy $500 billion worth of U.S. Treasurys over six months and leave itself room for more buying, said a report from influential consultancy Medley Global Advisors, a source told Reuters Wednesday.
The bond market has priced in between $500 billion to $1 trillion. This could be seen as a disappointment.
One caveat: in digging through this story, Medley has been a persistent leak over past few months. Regardless, I feel that whatever the Fed ends up doing will not produce its desired effect.
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