On Tuesday, the Federal Reserve re-affirmed its commitment to using unconventional efforts to stimulate the economy.
In the latest Fed statement, the central bank said it would keep buying $40 billion in mortgage-backed debt per month to push interest rates lower.
The Fed also repeated its vow to keep interest rates near zero until mid-2015.
Although that may seem like the Fed is sending a signal to markets that they’re intent to drive the economy, no matter what the cost – that may not be what the Fed is really saying.
According to former Fed Governor Kevin Warsh the move isn’t a show of strength – it’s something far more ominous.
“I think the Fed revealed in their actions just how grave they think the economy is,” he said on The Kudlow Report.
John Ransom and the Social Security Show-- Get Your Social Security Questions Answered | John Ransom
In Other News: Ukrainians Demolish Statue of Lenin – Putin Offers Statue of Himself as Replacement | Michael Schaus
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for September 29th, 2014 | John Ransom