With the marginally dismal employment numbers and rumors flying around that housing is entering a second dip in which JPMorgan analysts revised their forecast for a housing bottom to occur sometime near mid 2011 at a peak trough decline of 34%. So with these somewhat uncertainties the Federal Reserve Bank of New York bought $1.44 billion in inflation-indexed Treasury debt today Tuesday June 7th 2011 accounting for 19% of the dealer offered $7.77 billion in 2013-2041 Treasury Inflation Protected Securities. A significant headwind circulating the headlines around world are that energy and food prices are rising across the board due to inflation creeping in and staying around for the summer of 2011. So with this recent purchase does it mean that the Fed will continue to purchase more TIPS and continue quantitative easing measures? Here’s a simple Tip for our Fed stop spending money we don’t have. Here’s a look at the TIPS (an ETF tracked by Barclays) and the 10-year since 5/31/11’s announcement of the 9.1% unemployment rate:
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