Welcome to the TFC Commodity Trading Forum.
Please feel welcome to join in on these informative ongoing discussions about trading futures and commodities.

The Trading Forum is intended for the open discussion of commodities trading. The management of this Forum does not agree or disagree with the ideas exchanged, and does not exert editorial control over the message posted herein. Read and post at your own risk. The risk of loss in trading or commodities can be substantial. We discourage the use of this Forum to promote trading that is acknowledged to be risky. Please note: many links from the Forum lead to pages on other web sites. We cannot take responsibility for nor endorse the information presented on those sites.

TFC Commodity Trading Forum

Fed may buy other (!?!) assets, Williams says

Fed may buy other assets, Williams says (by Greg Robb)

WASHINGTON (MarketWatch) - The Federal Reserve could expand its bond-buying program beyond mortgage-backed securities if necessary to get the economy moving, John Williams, the president of the San Francisco Fed Bank, said Monday. In a speech at the City Club of San Francisco, Williams said the QE3 would serve as a kind of automatic stabilizer, with the Fed either increasing or cutting back the purchases depending on economic conditions. Williams said the Fed remained committed to low inflation even though it has launched QE3. Opponents of the bond buys inside and outside the Fed have expressed concern that higher inflation may now be in store as a result of the program. Williams forecast that inflation would remain slightly below 2% for the new few years. Williams was a strong supporter of the QE3 program -- open-ended purchases of $40 billion per month of mortgage-backed securities. He said the purchases should give a "shot in the arm" to the housing market's recovery at just the right time.