I'm definitely no expert (just graduated college in May woohoo!!)... but don't you think if they were going to do that they would have already? They could have bought MBS directly, but they didn't... Furthermore, even if rates were brought to zero, that still doesn't solve the problem of overwhelming debt to income ratios the consumer faces... take a look at mortgage rates, they are higher now than before the Fed started cutting. Sounds like Milton Friedman's liquidity trap. I know Ayn Rand would be pissed for not letting everything go to hell in a handbasket, but that's the world we live in. One more thing, can you explain to me what the Fed's objective is when it buys Treasury debt directly? I don't understand how that helps reflate the consumer economy. Thanks paisan!