The U.S. Federal Reserve announced Wednesday that it would pump an additional $1 trillion into the American financial system by purchasing Treasury bonds and mortgage securities in an effort to boost the economy.
The plan includes buying government bonds and mortgage-related securities in order to bring down the costs of home mortgages for owners as well as other types of loands, and ultimately in order to stimulate economic growth.
The Federal Reserve’s plan effectively means that the Central Bank will be printing money to pay for these purchases.
Related news articles:
