Fed to buy longer-term bonds to try to lower interest rates
http://dervishcom.blogspot.com/2011/09/fed-to-buy-longer-term-bonds-to-try-to.html
The Federal Reserve, seeing "significant downside risks to the economic outlook," moved to further lower longer-term interest rates Wednesday by adjusting its bond portfolio — its latest unconventional step to try to boost the ailing economy.
The central bank will buy $400 billion in longer-term U.S. Treasury bonds through June 12, which should in turn push down long-term rates and make it slightly cheaper for Americans to take out a mortgage or for businesses to make long-term investments. Instead of paying for the bonds with newly created money, as it did during a $600 billion program that ended in June, the Fed will use proceeds from selling off $400 billion in shorter-term securities on its books.
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Source: http://feeds.washingtonpost.com/click.phdo?i=975949ccd4eee9021169b4da00da5431
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