“The Federal Reserve has only two policies: inflation and blarney.” — Franklin Sanders
What happens when the Federal Reserve promises to create $1 trillion in fiat money per year, and then starts by buying long-term Treasury bonds and Fannie/Freddie bonds?
Interest rates go up.
Wait a minute. Weren’t interest rates supposed to go down? Yes, they were. That is what Keynesian economics teaches. Problem: Keynesian economics is wrong.
Lock in that mortgage rate.