Wall Street Breakfast: Must-Know News

FOMC decision creates “Rambo Fed.” After a two-day FOMC meeting, the Federal Reserve will buy as much as $300B of long-term Treasurys (concentrating on two- and ten-year securities) and more than double its purchase of mortgage-backed securities to $1.45T. The Fed kept its main rate near zero and may keep it there for an ‘extended’ time. The $1T TALF program “is likely to be expanded to include other financial assets.” In response to the moves, 10-year Treasury yields experienced their biggest