Financial Times FT.com

Short View: Fed’s shock and awe

By John Authers, Investment editor

Published: March 18 2009 20:37 | Last updated: March 18 2009 22:06

The Federal Reserve is on a war footing and it is using the Powell doctrine – only go to war as a last resort, and do so with overwhelming force.

The stunning news that it would buy $300bn (€222bn) in Treasury bonds (and spend a lot more on many other fixed-interest securities) also used another classic military strategy. It had the element of surprise.

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