Citing the slow pace of economic recovery and persistently high unemployment, the Federal Reserve on Jan. 26 unanimously decided to move forward with plans to purchase up to $600 billion in long-term Treasury bonds.
The central bank also reaffirmed its intent to keep short-term interests rates near zero for an extended period. According to futures markets, investors believe the Fed will begin raising rates in the early part of next year.
Source: Unanimous Fed Keeps Buying Bonds, The Wall Street Journal, Sudeep Reddy (01/27/11)
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