This is today's intra-day chart of yield on the 30 year bond (the "long bond"), you can see the rate dive low right after the announcement and then pop back up nearly where it was. Joe Weisenthal at Business Insider thinks their approach is not going to work.
Now the incorrect thing you'll hear today is this: That because the Fed says it would buy more long-term Treasuries, and because in theory greater demand for Treasuries causes rates to fall, that the fall in rates is what the Fed was going for.More ominously, from my viewpoint, this says the Fed wants inflation. They are doing all they can to create inflation and gets us out of this mess by creating money from thin air. If you're retired and living on savings, or saving for retirement, they just put another one in your back. Oh, yeah - I've been saying this for a couple of years.
But actually it's the opposite. Fed easing causes rates to rise, because people expect more growth and inflation and growth and inflation causes people to dump Treasuries.
So the initial drop in rates reflects the market's view that the easing the Fed announced wasn't satisfactory and that the Fed wasn't going to do as much as expected.