Justin's Political Corner

Fed-watchers have been hounding the central bank for months to take more aggressive steps to strengthen the economy.

On Tuesday, the Fed agreed. In a significant departure from previous policy, the Fed unveiled a new asset purchasing program — an open-ended twist on previous rounds of defined quantitative easing — and announced that monetary policy will remain loose until well after economic recovery takes hold. 

“To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month,” reads the Federal Open Market Committee’s statement.

H/T: Brian Beutler AT TPM