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The purchase or sale of Treasury securities on an outright basis adds or drains reserves available in the banking system. Such transactions are arranged on a routine basis to offset other changes in the Federal Reserve’s balance sheet in conjunction with efforts to maintain conditions in the market for reserves consistent with the federal funds target rate set by the Federal Open Market Committee (FOMC).
Originally posted by iNkGeEk
so i guess the whole debit ceiling thing didn't matter much. the global economy is still tanking. and the US govt can't do another stimulus package because they have to cut spending. my guess is that the US job report is going to be way below what is expected.
1. The Eurozone needs to re-establish independent monetary policy control back to each member country.
2. The USA is too far into debt that cuts alone are going to be enough to balance the budget.
NEW YORK (Reuters) - The United States lost its top-notch AAA credit rating from Standard & Poor's on Friday, in a dramatic reversal of fortune for the world's largest economy.
S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about growing budget deficits.
U.S. Treasuries, once undisputedly seen as the safest investment in the world, are now rated lower than bonds issued by countries such as the UK, Germany, France or Canada.
The outlook on the new U.S. credit rating is negative, S&P said in a statement, a sign that another downgrade is possible in the next 12 to 18 months.