The Federal Reserve effectively said, we’re going to keep the punch bowl out, and keep whatever you make of this “recovery party” going.
The hope, of course, is all this buying of Treasury notes and bonds helps already low interest rates, go even lower. This is the third time the Fed has gone to this financial wishing well.
Frankly it’s getting old, but for now, Bernanke and company are the only game in town, and for the markets, the only hope they have. They’re not seeing much leadership out of the White House and Congress.