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| Ben Bernanke |
Bloomberg - Federal Reserve policy makers indicated they are willing to do more to keep the economy from sliding into another recession as they made their second move in as many months to reduce borrowing costs. The central bank will extend the average maturities of the Treasuries in its portfolio by purchasing $400 billion of long- term debt while selling an equal amount of shorter-term securities, the Federal Open Market Committee said in Washington after ending a two-day meeting yesterday. “It’s a modest step,” said Dean Maki, chief U.S. economist at Barclays Capital and a former Fed economist. “This is a way to start down the path of further easing, but they would become more aggressive if they were convinced growth was not going to improve.” Treasury 30-year bonds surged in anticipation of central bank purchases of longer-term debt. Stocks fell, pushing the Standard & Poor’s 500 Index down the most in a month, on the Fed’s assessment that market turmoil caused by Europe’s sovereign-debt crisis is taking a toll on the U.S. economy. Read full story here: News New Mexico
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1 comments:
Of what use are lower rates if no one who wants to buy can buy and those who want to refinance can't because they're underwater with the equity in their homes? With the 10 year treasury under 2%, all this does is makes government borrowing slightly cheaper. Who are they trying to make rates lower for? Businesses won't hire, real estate is dead and there is little or no demand in the market.
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