News Column

US Central Bank Boosts Stimulus Efforts

Dec 12, 2012
US Economy

The U.S. Federal Reserve on Wednesday expanded stimulus measures, saying it would buy more securities to bolster the U.S. economy.

The central bank said it would purchase long-term Treasury securities into next year at a pace of 45 billion dollars per month and continue a programme announced in September to buy $40 billion in mortgage-backed securities.

The Fed also tied for the first time its benchmark interest rate directly to unemployment, indicating it would keep its benchmark interest rate at historic lows of 0 to 0.25 per cent as it seeks to bolster economic growth until unemployment falls below 6.5 percent. Unemployment stood at 7.7 percent in November.

Source: Copyright 2012 dpa Deutsche Presse-Agentur GmbH