Finally - The Fed Is Going Somewhere

The decision of the Federal Reserve to buy back long term treasury bond and mortgage back securities is long overdue. In fact The Fed should have done so during the 3rd quarter 2008 (before the collapse of Lehman etc).

Put it this way. As an undergraduate I follow by the book. When recession is closed to deflation then the appropriate way to revitalize the economy is to push for inflation. However the threat of hyperinflation could not be ruled out.

I would assume that the Federal Reserve would exercise the buying back strategy in order to improve its Balance Sheet. I predict it won't be long before other central banks follow suit.

Opec's decision to cut oil production has pushed crude oil prices to go higher than USD 50. I think the price between USD 50 to 60 per barrel is acceptable for the oil producing nations and buyers, considering the current economic outlook.