Some Details On Fed Announcement

This post (via Mark Thoma), provides some commentary on the Fed's announcement. The housing market has to be fixed in order for the economy to fully recover from recession. The Fed's plan to sell short term treasuries and to replace them with long term notes will encourage refinancing at lower interest rates. Lowering interest payments is probably the best investment that households can make in this market. Stocks are down and interest rates on savings are negligible. The opportunity cost of paying down debt is very low.