Fed's bold plan still might not jolt slow economy | General Headlines | Comcast
No sooner did the Federal Reserve unveil a bold plan Thursday to juice the U.S. economy than it dangled the prospect of doing even more.
Buy $40 billion a month in mortgage bonds indefinitely to try to lower long-term interest rates, encourage home buying and get people to borrow and spend more. It's the Fed's third bond-buying program. If job growth doesn't improve much, the Fed will continue its bond purchases and take other steps.
_ Likely keep its benchmark short-term rate at a record low near zero through at least mid-2015. That's six months longer than the Fed had previously planned.
_ Probably hold interest rates low even well after the economic recovery has strengthened.
The mortgage bond purchases are unlikely to boost home sales much, even if they manage to lower mortgage rates further. The average rate on a 30-year fixed mortgage is already 3.55 percent, barely above the record low of 3.49 percent.
Still, Bernanke maintained that the Fed can help further, even with rates already ultra-low. He's argued that the Fed's first two rounds of bond purchases, in which it bought more than $2 trillion in bonds, saved 2 million jobs and accelerated growth.
Good job Obama,further dulite the dollar until it is worth a dime...Destroying America one day at a time,he has sold your soul.......
No sooner did the Federal Reserve unveil a bold plan Thursday to juice the U.S. economy than it dangled the prospect of doing even more.
Buy $40 billion a month in mortgage bonds indefinitely to try to lower long-term interest rates, encourage home buying and get people to borrow and spend more. It's the Fed's third bond-buying program. If job growth doesn't improve much, the Fed will continue its bond purchases and take other steps.
_ Likely keep its benchmark short-term rate at a record low near zero through at least mid-2015. That's six months longer than the Fed had previously planned.
_ Probably hold interest rates low even well after the economic recovery has strengthened.
The mortgage bond purchases are unlikely to boost home sales much, even if they manage to lower mortgage rates further. The average rate on a 30-year fixed mortgage is already 3.55 percent, barely above the record low of 3.49 percent.
Still, Bernanke maintained that the Fed can help further, even with rates already ultra-low. He's argued that the Fed's first two rounds of bond purchases, in which it bought more than $2 trillion in bonds, saved 2 million jobs and accelerated growth.
Good job Obama,further dulite the dollar until it is worth a dime...Destroying America one day at a time,he has sold your soul.......