Featured on 40:     Well Wishes for Alex     Parade Slideshow     Gas Prices     Weather Discussion    

Fed is Expected to Launch New Bond Buying Program

WASHINGTON (AP) — The Federal Reserve meets this week and could try to soften the blow from the tax increases and spending cuts of the fiscal cliff if Congress can’t reach a budget deal.

The Fed is expected to announce a new bond-buying plan to support the U.S. economy by further reducing long-term interest rates and encouraging borrowing by companies and individuals.

But Chairman Ben Bernanke warned last month that the Fed’s actions wouldn’t rescue the economy in a fiscal cliff scenario.

If higher taxes and government spending cuts were to last for much of 2013, most experts say the economy would sink into another recession.

Once its two-day policy meeting ends Wednesday, the Fed is likely to say it will start buying more long-term Treasury’s to replace a program that expires at year’s end.

Related Stories
Share this story


WGGB encourages readers to share their thoughts and engage in healthy dialogue about the issues. Comments containing personal attacks, profanity, offensive language or advertising will be removed. Please use the report comment function for any posts you feel should be reviewed. Thank you.
blog comments powered by Disqus