What has the Fed announced?

Faced with a key close to zero percent, the Fed, the economy of the country strauchelnde with another billion injection to boost the central bank announced on Wednesday evening, long-term U.S. government bonds with a volume of up to $ 300 billion to buy. In addition, more asset-securities worth up to $ 850 billion in the balance sheet. This includes papers, with mortgages or student loans are deposited, it was in the Fed statement.

The dimension is remarkable: The additional sum equivalent to about eight percent of U.S. gross domestic product. Meanwhile, the Fed absorbs about half of all mortgage-backed securities, in government bonds, their market share in new issues at 30 percent. “The Fed will shoot from all cylinders,” said Mildred Hager, economist of the First Group, the support action.

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