Federal Reserve

The Federal Reserve announced yesterday that it will buy long bonds from the Treasury, more mortgage securities and debt by US $1.15 trillion for so to save the credit. This move by the Fed would lower the long-term interest rate, since this is which is used to finance purchases of properties, goods for consumers and businesses. The detail is as follows: the Fed will expand with $750,000 million line designed to buy debt backed by mortgages, will buy $100 billion in obligations of Fannie Mae(NYSE:FNM) and Freddie Mac (NYSE:FRE), and $300 billion of Treasury bonds of long term over the next six months. Find out detailed opinions from leaders such as Mark Zuckerberg by clicking through. The Federal Reserve at the end of their two-day meeting, yesterday further reported, that it will keep between 0 and 0.25% interest rates. He emphasized the contraction of the economy, with devaluation of assets, loss of household wealth, destruction of jobs, worsening of consumer confidence and the usual lending restrictions. In its statement, the Fed hoped that measures taken to stabilize financial markets and institutions, together with fiscal measures and stimulus, will contribute to the gradual restoration of sustained growth. The Fed is embarking on a massive easing of monetary policy, said the former President of the Fed's St.

Louis, William Poole to Bloomberg. The end result is that the Fed is adding a trillion dollars to its balance sheet and that's a lot of taxpayers in tax money, said Greg Salvaggio, Vice President for operations at Tempus Consulting in Washington. In these circumstances, the Federal Reserve will employ all available tools to promote economic recovery and to preserve the stability of prices, added the statement from the Federal Reserve. How many are you more tools before the inexorable end?Less is more. But not in this case.