http://dshort.com/articles/bonds/treasuries-since-QE2-press-release.html
“QE2 is a gambit. At face value, we must assume that speeding the recovery and increasing core inflation to the target rate are the true motives. The Fed says as much, and the concern of the sole dissenter, Thomas Hoenig about long-term inflation risks, reinforces this view. On the other hand, blog commentators have speculated on a range of ulterior prime motives — ranging from bank bailouts to funding Uncle Sam with interest-free loans, etc.
We are in the early days of an innovative Fed program initially planned to extend through Q2 of 2011, but with regular reviews and adjustments. Much could change, not least of which is the behavior of foreign purchasers of Treasuries: significant cuts in future purchases would be a game-changer.”
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