Fed to spend $40B a month on bond purchases

Thu Sep 13, 2012 6:50 pm » by **domdabears**

The Federal Reserve says it will spend $40 billion a month to purchase mortgaged-back securities because the economy is too weak to reduce high unemployment. The Fed says it will keep buying the securities until the job market shows substantial improvement.

The Fed also extended a plan to keep short-term interest rates at record-low levels through mid-2015. Both steps were announced after the Fed's two-day policy meeting.

The bond purchases are intended to lower long-term interest rates to spur borrowing and spending. The Fed has previously bought $2 trillion in Treasury bonds and mortgage-backed securities since the 2008 financial crisis.

Skeptics caution that further bond buying might provide little benefit. Rates are already near record lows. Critics also warn that more bond purchases raise the risk of higher inflation later.

http://news.yahoo.com/fed-spend-40b-mon ... 55641.html

Thu Sep 13, 2012 8:50 pm » by **99socks**

The thing is... with all the foreclosures... none of those securities are "mortgage-backed" anymore... :twisted:

Fri Sep 14, 2012 12:55 am » by **Mydogma**

Ahh isn't that nice...the scumbags are going to buy the rest of the crappy paper of their banker buddies..helping the pOor saps out...how nice..hey here's in idea einstien(bernakie) hmm how about give half a billion to each state everymonth and fix roads and bridges...that might create a few jobs...these people should truly be hung for treason..and I don't even support capital punishment..