The Federal Reserve has released on Wednesday 11/03 its decision to to buy billions of US dollars in form of long-term bonds to give a US economy support in dark times.
The well-telegraphed decision would be aimed at pushing down borrowing costs for consumers and businesses still smarting from the worst recession since the Great Depression, though there are doubts about its effectiveness.
With the U.S. economy expanding at only a 2 percent annual pace in the third quarter and the jobless rate seemingly stuck around 9.6 percent, the Fed has come under pressure to do more to stimulate business activity.
Economists expect a new round of Treasury purchases to total about $500 billion over a six-month period and to be accompanied by a signal that officials, who have been divided over the wisdom of the move, might ramp up the operation if needed.
“We expect the statement will express a willingness — but not necessarily a bias — to further increase asset purchases if warranted by economic conditions,” said Michael Feroli, chief U.S. economist at JPMorgan in New York.
The Fed is expected to announce its decision at around 2:15 p.m. ET.
