Breaking News Alert The New York Times Thursday, September 13, 2012 — 12:42 PM EDT
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.
Federal Reserve announces new stimulus action Los Angeles Times | September 13, 2012 | 9:39 AM
The Federal Reserve today announced another round of stimulus action to boost the faltering economic recovery. The Fed said it would buy $40 billion worth of mortgage-backed securities a month for an undetermined period to reduce longer-term interest rates. The Fed also said it expected to keep short-term interest rates near zero until mid-2015.
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