Mar '09 19
Fed launches bold $1.2T effort to revive economy
By El Diablo
With the US sinking deeper into recession, the Federal Reserve launched a bold $1.2 trillion effort Wednesday to lower rates on mortgages and other consumer debt, spur spending and revive the economy. To do so, the Fed will spend up to $300 billion to buy long-term government bonds and an additional $750 billion in mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac. Fed Chairman Ben Bernanke and his colleagues wrapped a two-day meeting by leaving a key short-term bank lending rate at a record low of between zero and 0.25 percent. Economists predict the Fed will hold the rate in that zone for the rest of this year and for most — if not all — of next year. The decision to hold rates near zero was widely expected. But the Fed’s plan to buy government bonds and the sheer amount — $1.2 trillion — of the extra money to be pumped into the U.S.
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Posted Under:
Economy
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7 Responses to “Fed launches bold $1.2T effort to revive economy”
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March 19th, 2009 @ 12:10 PM
i hope it will revive the economy
March 19th, 2009 @ 12:15 PM
don’t worry OK, Americans know how to deal with a crisis, unlike here.
I have heard that Bernanke actually studied the Great Depression extensively. I think he knows what he’s doing.
March 19th, 2009 @ 12:59 PM
well noted
March 19th, 2009 @ 2:01 PM
eee khosh shay
March 19th, 2009 @ 2:16 PM
I think they need to jump start the world! Things haven’t been like this before!
March 19th, 2009 @ 2:20 PM
THEY STARTED IT SO THEY SHOULD END IT… :)
March 19th, 2009 @ 9:46 PM
El Diablo!!!!! what an exotic name!!