Stig Östlund

torsdag, september 13, 2012

Fed Sets Open-Ended Asset Purchases to Spur Growth; Extends Low Rates Into 2015‏

The New York Times
Thursday, September 13, 2012 -- 12:42 PM EDT
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Fed Sets Open-Ended Asset Purchases to Spur Growth; Extends Low Rates Into 2015

The Federal Reserve opened a new chapter Thursday in its efforts to accelerate the economic recovery, saying that it would expand its holdings of mortgage-backed securities, and potentially undertake other new policies, until unemployment drops sufficiently or inflation rises too fast.

The Fed said that it will add $23 billion of mortgage bonds to its portfolio by the end of September and then announce its plans for October as part of a new process that aims to prioritize the Fed’s economic objectives.

The Fed also said, in a statement following a meeting of its policy-making committee, that it now expects to hold short-term interest rates near zero until at least mid-2015, extending the forecast it made in January by about half a year.

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