Fed Moves Toward Open-Ended Bond Purchases to Satisfy BernankeSubmitted by GBAmerica on Mon, 09/03/2012 - 23:17
Fed Moves Toward Open-Ended Bond Purchases to Satisfy Bernanke
Federal Reserve Chairman Ben S. Bernanke says the U.S. economy is “far from satisfactory.” His colleagues are moving to embrace policies that will stay in place until he’s satisfied.
Four Fed presidents have come out in favor of an open-ended strategy for bond buying, with three calling for the program to begin now. Rather than specify a fixed amount of bonds to purchase by a certain date, such a strategy would leave the Fed able to announce a pace of purchases that it could adjust as the economy gets closer to Bernanke’s goals.