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.
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