Federal Reserve announces unprecedented steps to bolster the economy Wednesday
The Federal Reserve announced Wednesday that it will take
unprecedented steps to bolster the economy, saying it will continue to
stimulate growth unless the unemployment rate falls to 6.5 percent or the
inflation rate reaches 2.5 percent.
It was a historic move that for the first time explicitly spells out the Fed's goals for the economy
and how it will respond to changing economic conditions. The Fed says
it will also begin purchasing $45 billion in Treasury bonds a month,
on top of $40 billion a month it is already buying in mortgage bonds.
The statement amounts to a major new commitment to reducing
unemployment but also shows that Fed officials remain concerned about
the long-term prospects for the U.S. economy.
It looks like the FED is anticipating recession in 2013.