QE2 Announcement by Federal Reserve

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QE2 Announcement by Federal government

Finally on 2nd November 2011, Wednesday, the federal government has announced QE2 (Quantitative Easing 2).

According to TheSteet.com,

The FOMC (Federal Open Market Committee) announcement that took place at 2:15 p.m eastern time Wednesday afternoon and revealed the Fed's decision to purchase up to $600 billion in long-term Treasuries until the end of June 2011, vs. the $500 billion that the market was expecting.

"The volatility may continue as there were reasons for profit taking, and sell stops in the market were based on sell the news," said George Gero Vice President, Global Futures, RBC Capital Markets.

Well, in simple words, from now onwards, to the end of 2011, Federal government will print US $ 75 Billion every month after month totaling US $ 600 Billion.

Thus, the US Federal Reserve will print more US $ 600 Billion over a period of time up to the end of 2011.

Ultimately, QE2 will drive all the asset prices (Stocks, Gold & Silver) to sky high in the year 2011.