Federal Reserve to buy more debt to boost US economy

Federal Reserve to
buy more debt to boost US economy
The US central bank has moved
to kick-start economic recovery by restarting its policy of pumping money into
the economy via quantitative easing. The Federal Reserve said it will buy
“additional agency mortgage-backed securities at a pace of $40bn (£25bn) per
month”.  

Fed
launches bold new stimulus program
The U.S. Federal Reserve
launched another aggressive stimulus program on Thursday, saying it will buy
US$40-billion of mortgage-backed debt per month until the outlook for jobs
improves substantially as long as inflation remains contained. In an
unprecedented step, the Fed’s policymaking panel escalated its effort to drive
U.S. unemployment lower by tying its unconventional bond buying directly to
economic conditions, a move that immediately sparked controversy among its
critics.