Fed To Continue Bond-Buying Program

A few weeks ago many were saying that that the Fed was considering on pulling back on their bond-buying program, but it has been recently announced that they will not do so, and will instead increase the numbers of treasury and mortgage backed securities that they will be buying. The Fed believes that the government’s fiscal policy is doing little to help the economy grow. The Fed is willing to adjust the amount of bonds that they buy based on the shape of the economy in order to help with expansion. Investors are expecting the Fed to continue pushing out money to buy bonds until the economy shows that it is in better shape.

It is good that the Fed is willing to continue their bond-buying program in order to help the economy grow, but the Fed should not be the only ones who are trying to do so. It is important that the government and all those who are vital to the economy also help to expand the economy.

Written by: Jessica Ho
Source: The Wall Street Journal

http://online.wsj.com/article/SB10001424127887324582004578457161695264402.html?mod=WSJ_Heard_LEFTTopNews

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