Fed Sets to Buy 850 Billions Bonds in Its QE2

Fed announced today it will buy long-term U.S. treasure up to 600 billions and reinvest 250 billions by the end of the first half of 2011 according the statement released by Fed.  The oil price makes 3-months high after the announcement.  If the Fed’s QE creates the commodity bubble we will see the unintentional consequence which hurts the consumer income, spending and business.  Keep an eye on the commodity price, especially the oil price.