"Fed to Buy $600 Billion of Treasurys"

By Tom Duncan
"The Federal Reserve Wednesday unveiled a controversial new plan to buy U.S. Treasurys, hoping to spur growth in a disappointingly slow U.S. economy. After two days of discussions, Fed officials decided to go ahead with a much anticipated program, saying they will buy $600 billion of U.S. government debt over the next eight months. The Fed's policy-setting body said it stands ready to purchase more bonds if the economy's persistent weakness leads inflation to remain too low and unemployment too high. The Fed's first $1.75 trillion bond-buying program, which ran from Dec. 2008 to March 2010, is credited with helping the economy when the U.S. was hit by a financial crisis and a deep recession. The latest move is more controversial because the economy is now growing -- albeit slowly -- and financial markets are no longer under severe stress." Read more"Fed to Buy $600 Billion of Treasurys"  Luca Di Leo and Tom Barkley  Wall Street Journal, November 3, 2010. Image by Francesco Marino / FreeDigitalPhotos.net.

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