Though a significant rise in interest rates could be toxic for a softening U.S. economy, the Federal Reserve has said it will end its program of purchasing $600 billion in U.S. Treasury bonds as planned on June 30. The Fed is estimated to have bought about 85 percent of Treasury’s securities offerings in the past eight months.
85 percent?!? If there was any doubt that the QE2 is a failing policy, that should resolve all doubts. As if there should have been any doubt anyway.
Quantitative Easing is going away. There isn't anything else the Fed can do to help the economy. It's up to policy makers in Washington now.
Of course, they can go back to this to the QE well, but if they are already buying 85% of the Treasuries, that percentage can only get worse. Not to mention that they have to roll over the debt they have already accumulated. Somebody needs to wake these people up in Washington. This is an untenable position.
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