The New York Fed plans to purchase securities worth $850 to $900 billion in the second round of quantitative easing.
It works like this: There will be an additional amount of purchases worth $600 billion (that’s the headline number from the Fed today).
But there will also be a reinvestment of $250 to $300 billion from payments associated with other securities it already holds.
That makes QE2 feel a whole lot bigger, and closer to the top end $1 trillion number that was mentioned.
And this is their strategy for purchases:
Photo: New York Fed
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