The Federal Reserve is making a BIG announcement tomorrow

(November 2, 2010) The Federal Reserve is announcing on Wednesday its new policy statement for their timetable and purchase amounts for Treasuries. The new program has been compared to an economic B-12 shot.

The new round of government bond purchases is aimed at lowering long-term interest rates and stimulating the stalled economy. It is expected that the Fed will buy between $400 billion to $750 billion in Treasury notes or other assets over the next six to eight months.

The goal: drive up the prices of long-term bonds, which in turn, pulls down rates on mortgages and other loans, spurring consumers to buy homes and cars, and businesses to invest and hire workers.

None of the "experts" want to stick their neck out, but depending on how many Billions and the timeframes involved, some have stated that, "The Fed's policy statement could be the biggest market mover of mortgage rates in 2010".

We'll just have to wait until tomorrow to find out how much and which direction.