Baton Rouge, Louisiana
7 Day Forecast
Follow our weather team on social media

Fed to spend $45B to sustain bond purchases

2 years ago December 12, 2012 Dec 12, 2012 Wednesday, December 12 2012 Wednesday, December 12, 2012 10:40:45 AM CST in News
Source: AP

WASHINGTON- The Federal Reserve will spend $45 billion a month to sustain an aggressive drive to keep long-term interest rates low. And it set a goal of keeping a key short-term rate near zero until unemployment drops below 6.5 percent.

The policies are intended to help an economy that the Fed says is growing only modestly with 7.7 percent unemployment in November.

The Fed says it will direct the money into long-term Treasurys to replace an expiring bond-purchase program. The new purchases will expand its investment portfolio, which has reached nearly $3 trillion.

The central bank will continue buying $40 billion a month in mortgage bonds. All told, its monthly bond purchases will remain $85 billion. They are intended to reduce already record-low long-term rates to encourage borrowing and accelerate growth.

More News

Desktop News

Click to open Continuous News in a sidebar that updates in real-time.
7 Days