Fed Expected to Kick Off 2nd Round of Stimulus Spending

Analysts expect the US Federal Reserve to announce today that it will commit $500 billion to engage in further quantitative easing through the buying of government bonds.

“We expect the statement will announce an intention to purchase $500bn of longer-dated Treasury securities over the next six months,” said Michael Feroli at JP Morgan Chase. “In addition, we expect the statement will express a willingness – but not necessarily a bias – to further increase asset purchases if warranted by economic conditions.”

Source: BBC News

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