Fed Plans $1 Trillion in "Stimulus" Spending

More money down the rathole

The Federal Reserve more than doubled the rate of its net bond buying and set guidelines for keeping interest rates near zero that explicitly tolerate short-term inflation above its 2% target.

As expected, the central bank will create $85 billion a month to buy mortgage-backed securities and Treasury bonds, up from its current pace of $40 billion in so-called quantitative easing.

While the Fed can adjust its bond purchases based on economic conditions, $85 billion a month adds up to $1.02 trillion over 2013, adding to the more than $2 trillion in assets bought since the start of the financial crisis.