Wednesday, March 25, 2009
Fed to Start Purchasing Treasuries to Unfreeze Credit
The Federal Reserve starts purchasing long-term Treasuries today, aiming to bring down borrowing costs by employing tools last used in the 1960s.
The first operation in the $300 billion effort is targeted on notes maturing from February 2016 to February 2019, the New York Fed Bank said in a statement yesterday. In the coming eight days, the central bank plans to buy debt maturing between March 2011 and February 2039, according to the tentative schedule.
The Fed joins central banks in the U.K. and Japan in extraordinary purchases of government debt, broadening efforts to unfreeze credit and end the recession after cutting the benchmark interest rate close to zero. The Fed’s purchases may ultimately be overwhelmed by new government borrowing to finance a budget deficit projected at $1.5 trillion this year...
Bloomberg: Fed to Start Purchasing Treasuries to Unfreeze Credit
The first operation in the $300 billion effort is targeted on notes maturing from February 2016 to February 2019, the New York Fed Bank said in a statement yesterday. In the coming eight days, the central bank plans to buy debt maturing between March 2011 and February 2039, according to the tentative schedule.
The Fed joins central banks in the U.K. and Japan in extraordinary purchases of government debt, broadening efforts to unfreeze credit and end the recession after cutting the benchmark interest rate close to zero. The Fed’s purchases may ultimately be overwhelmed by new government borrowing to finance a budget deficit projected at $1.5 trillion this year...
Bloomberg: Fed to Start Purchasing Treasuries to Unfreeze Credit
Permalink posted by markw @ 5:09 AM 
 |
 |  |
  |
