The Fed thinks interest rates are much lower because of their purchases:
Fed analysts suggested the $300bn purchase would reduce the yield on 10-year Treasuries by 25-35 basis points. Officials think the rate today is much lower than it would have been if they had not started buying.
And why is that, since these officials can't see any inflation on the horizon?
However, given the sharp rally in equity markets since early March – the S&P 500 index is up more than 25 per cent – yields would probably have risen much more without the Fed’s intervention.
Now the Fed needs to leak to FT!
Nobody's listening at the WSJ!