Fed to Buy Up to $300 Billion in Treasuries; Stocks Rally
The Federal Reserve announced that it will begin buying Treasuries to help open up tight credit markets. The central bank plans to purchase up to $300 billion of longer-term Treasury securities over the next six months. Upon announcement of the decision, both government bonds and bank stocks soared. Quincy Krosby, who helps manage $298 billion as chief investment strategist at the Hartford in Hartford, Connecticut, commented, “The Fed is all in and they’re going to do whatever it takes to kick-start the economy. It’s good for stocks because the more the economy picks up the more companies profits and revenues…