Yesterday, Ben Bernanke and company again befriended borrowers and remained the enemy of savers.
The Federal Open Market Committee announced plans to buy long-term Treasury bonds and sell short-term Treasury notes. Specifically, the Fed will buy Treasury securities with maturities of six to 30 years and sell or redeem Treasury securities with maturities of three years or less. The intent is to bring long-term interest rates down, closer to short-term rates. Bond experts refer to this as a flattening of the yield curve.