Fed to Pump $600 Billion Into Economy
Saying that the recovery isn't occurring fast enough, the Federal Reserve announced today it will buy $600 billion of U.S. government debt over the next eight months.
The Fed said it was making the decision to "promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its [the Fed's] mandate.''
The decision was made by the Fed's Open Market Committee.
The Fed also announced it was keeping the federal funds rate, the interest rate banks use when lending to one another, at between 0% and 0.25%.
Kansas City Federal Reserve Bank President Thomas M. Hoenig was the only person to vote against policies and cited the risk of "future financial imbalances'' and causing more inflation.