Fed is Expected to Launch New Bond Buying Program
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.