More quantitative easing in the US is "certainly possible", Federal Reserve chairman Ben Bernanke said in a rare television interview on Sunday.
The Fed's latest bout of quantitative easing will see the bank buy about $75bn of US Treasuries a month until the end of June in an effort to drive down long-term interest rates in the economy.
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Why does the Federal Reserve want to do QE2 & QE3? Its simple in my opinion, the government can't afford to borrow at much higher costs so they tell the Federal Reserve Bank to buy Treasuries to keep yield as low as possible and even with the Fed. Reserve buying, yields are still going higher but yields would be going up much much higher without the Fed. action.
Dec. 8, 2010
NEW YORK (NYSE:AP) -- Treasurys bonds are in a steep fall and stocks are headed to a mixed opening as investors continue to size up President Barack Obama's compromise to extend tax cuts for two years.
Investors expect the tax-cut deal to boost economic growth but also widen the budget deficit.
Treasury prices are dropping in early Wednesday trading, sending their yields higher. The yield on the 10-year Treasury note rose to 3.23 percent, the highest level since June.
That means higher borrowing costs for the U.S. government when the Treasury auctions off $21 billion in 10-year notes later Wednesday.