Posted: Oct 4, 2012 7:29 PM by Michael Marsh
Updated: Oct 4, 2012 7:29 PM
Source: Associated Press
The Federal Reserve chose buying mortgage bonds after members agreed that helping the lagging housing recovery was a good way to boost the economy. The Fed also says it would keep buying mortgage bonds until the job market showed substantial improvement. Minutes from the Fed's meeting in September also show most members agree that tying a future increase in short-term interest rates to economic measures could be effective but will hold off on the change to work out details. The Fed also extended keeping its short-term interest rates near zero until mid 2015 and could take additional steps to jump-start the economy.