Fed Opts for More Stimulus

Federal Reserve will buy more bonds to try to boost economy
By John Johnson,  Newser Staff
Posted Sep 13, 2012 11:46 AM CDT
Fed Opts for More Stimulus
In this Aug. 7 file photo, Federal Reserve Chairman Ben Bernanke speaks to educators in the board room of the Federal Reserve in Washington.   (AP Photo/Manuel Balce Ceneta)

The in-limbo markets finally got their answer: The Federal Reserve said today it will indeed try to juice the economy with an aggressive new round of bond-buying. The difference this time, explains the Wall Street Journal, is that it's not buying a set amount—this is "an open-ended program to buy bonds until the economy improves." Specifically, the Fed will purchase $40 billion in mortgage-backed securities each month. As expected, the Fed also plans to keep interest rates low for the foreseeable future. The Dow jumped 50 points in the first few minutes after the announcement and seemed on track for a strong day. (Read more Federal Reserve stories.)

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