- Oct 21, 2009
- Reaction score
- Political Leaning
Good to see the bull run taking place in the stock markets in the region right now.
Fed Will Continue Economic StimulusThe Federal Reserve has postponed any retreat from its long-running stimulus campaign, saying that it would continue to buy $85 billion a month in bonds to encourage job creation and economic growth.
AP reports the Fed said it was concerned that fiscal policy once again "is restraining economic growth," threatening to undermine what the Fed had described just months ago as a recovery gaining strength.
The program involves the Fed unleashing money into the economy by buying up bonds. Federal Reserve Board Chairman Ben Bernanke had previously signaled the central banking organization would taper off purchases starting in late 2013, ending in mid-2014.
Stock markets jumped after the announcement, with the Standard & Poor's 500-stock index touching a record high and the Dow Jones industrial average ahead more than 100 points.
In the statement, the Fed said that the economy is growing moderately and that some indicators of the job market have shown improvement. But it noted that rising mortgage rates and government spending cuts are restraining growth.