Fed to buy 600 billion in treasury bonds (video)

Fed to buy 600 billion in treasury bonds (video)

As conservatives made a sweeping victory with midterm elections and the sustainability of the Obama administration is under heavy scrutiny, the Federal Reserve announced  it will buy $600 billion in treasury bonds in an effort to revitalize the sluggish U.S. economy.  What that means for the local citizen, is that the Federal Reserve will print $600 billion dollars, put it into the economy, and hope that this ‘simulates’ the economy by lowering  interest rates and to jump start bank lending. 

Many point out that when the Fed prints money to jump start the economy, the value of the dollar is lessened, but at this point, many are anxious for any help and are waiting for the promised creations of job.  However, this does mean that the value of the dollar is weakened and those who rely on interest from their financial portfolios will not see any increase.  Interest rates and mortgages are extremely low, but on the same note, those who hope to earn from money market funds, interest from things like Certificates of Deposits or even savings accounts will not see an increase.

This move by the Federal Reserve is about job creation and hoping that by putting the money into the economy.  The Washington Post has a full op/ed on Ben Bernanke and the new $600 billion stimulus plan You may read it here: Washington Post Full Op/Ed

Read More by U.S. Headlines Examiner Charisse Van Horn

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