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timeletsWASHINGTON (AP) -- The Federal Reserve announced Wednesday it will start buying long-term government bonds, its latest step to try to lift the country out of recession.
The Fed said it will buy up to $300 billion in long-term Treasury securities over the next six months.
Doing so could help the economy because many kinds of debt -- from mortgages to corporate bonds -- are linked to Treasury rates. Fed purchases would boost Treasury prices and drive down their rates. That would ripple through and lower rates on other kinds of debt.
http://finance.yahoo.com/news/Fed-to-buy-up-to-300B-apf-14679757.html
The Fed said it will buy up to $300 billion in long-term Treasury securities over the next six months.
Doing so could help the economy because many kinds of debt -- from mortgages to corporate bonds -- are linked to Treasury rates. Fed purchases would boost Treasury prices and drive down their rates. That would ripple through and lower rates on other kinds of debt.
http://finance.yahoo.com/news/Fed-to-buy-up-to-300B-apf-14679757.html
