Sunday, November 7, 2010

Fed buys $900B in bonds to spur growth

The Federal Reserve on Wednesday made good on its promise to try to spur faster economic growth through a controversial program to purchase about $900 billion in Treasury bonds — nearly half the amount issued to finance this year's federal deficit.

The program aims to force further reductions in the interest rates on mortgages and other long-term loans that are tied to Treasury bonds, though those already are at record lows, to try to spark a healthier economic expansion and reduce unemployment.

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