BBC News - Federal Reserve to buy more debt to boost US economy - 0 views
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buy "additional agency mortgage-backed securities at a pace of $40bn (£25bn) per month".
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Yihan Li on 14 Sep 12Buying the securities increases the supply of money in the market
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Yihan Li on 14 Sep 12Increase in supply of money is used to expand aggregate demand
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Yihan Li on 14 Sep 12(evaluation) talk about the merits and demerits of increase in AD
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nterest rates in the US have been close to zero for several years now, and the Fed again kept them at below 0.25% on Thursday.
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quantitative easing
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"We doubt it will be enough to get the economy on the right track. It's only a matter of time before speculation begins as to when the Fed will raise its purchases from $40bn a month."
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the central bank buys bonds to keep the long-term cost of borrowing down.
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The unemployment rate in the US has been above 8% since January 2009, but the current 8.1% is down from the recent high of 10% in October 2009.
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US presidential election.
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Ben Bernanke also lowered the Fed's growth forecast for the US economy to 2% this year, down from the 2.4% it predicted in June
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"The committee is concerned that, without further policy accommodation, economic growth might not be strong enough to generate sustained improvement in labour market conditions,
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Federal Reserve to buy more debt to boost US economy