The Fed is expected to announce plans to intervene in the bond market to push long-term interest rates -- already near historic lows -- even lower in a move known as Operation Twist.
Federal Reserve officials might propose new measures to galvanize the economy when the Federal Open Market Committee completes a two-day meeting. Ben S. Bernanke, the central bank’s chairman, told economists Sept. 9 in Minneapolis that policy makers have measures at hand and are “prepared to employ these tools as appropriate.” read ben bernanke press conference in Minneapolis september 8 2011
The market is expecting some stimulus plan from (Fed Chief Ben) Bernanke, so if that doesn't happen it will be an ugly night
Fed announced it would buy long-term Treasury bonds to help the U.S. economy
In a highly anticipated move, the Fed on Wednesday announced it would buy long-term Treasury bonds to help the U.S. economy. But Wall Street stocks fell anyway because the U.S. central bank made it clear that a full U.S. economic recovery was likely years away. Stocks recently have been extremely volatile over fears of another recession.
The Fed said after a two-day meeting that it would buy long-term Treasurys and sell short-term. The move is intended to drive down interest rates on long-term government debt, and could lower rates on mortgages and other loans. It surprised investors when it said it would include more 30-year bonds in its purchases than expected.
The Fed said it would buy $400 billion in 6-year to 30-year Treasurys by June 2012. Over the same period, it planned to sell $400 billion of Treasurys maturing in 3 years or less.
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ben bernanke new stimulus sept 21 2011, bernake press conference sept 21 2011, us economic outlook sept 21 2011. For the latest updates PRESS CTR + D or visit Stock Market news Today
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