Sometimes nothing is as it seems. Bernanke & Co pay a lot of attention to how markets react to their moves. And, they spend a lot of time working on the language and how their spin will be received. It's perhaps more important than the action they take.
Some are wondering if the Fed action regarding mortgages is a ploy to help the Treasury with a "mega-refi" plan as articulated HERE. That's an interesting notion but just that to me. I didn't write a commentary yesterday knowing the Fed would be the star attraction Wednesday. That seemed like a good idea in retrospect.
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