January Fed Statement

"With jobs disappointingly slow,
Home prices depressingly low,
And inflation subdued -
We, the members, conclude:
On the good QE2 we shall row."  

The Fed's Open Market Committee ended their January meeting yesterday and determined that, with only modest improvement in economic conditions and continuing weakness in the housing and labor markets, they would continue along the path of quantitative easing.  QE2, as it is known, is the program of buying Treasury bonds to lower interest rates and increase the money supply, thereby providing a monetary stimulus to the economy.