Asia Bizz: Federal Reserve To Pump In $900 Billion Into The US Economy

In the latest move by America’s primary bank, the Federal Reserve has finally decided to pump $900 billion into the sluggish US economy, in a move to bring the nation’s financial wagon back on track. The Central Bank is looking ahead to buy $600 billion in the form of long term Treasuries for the next 8 months. In addition to this the Federal bank has also stated that it will be investing an additional $250-300 billion into Treasuries.

These bond purchasing’s for the economy is also known as ‘Quantitative Easing’ or QE2, as the whole policy will be released by the third quarter of 2011. Since August, when the Federal Reserve had first quoted that it will once again pour in some more money into the economy, investors have been speculating how much will they be actually putting in.

Now finally it has been disclosed that the Federal Reserve will be releasing something $500 billion to $1 Trillion into the US economy. The Fed officials had earlier stated that the economy was recovering just too slowly, and that there has been little or no improvement at all in the financial sector. Earlier during the Great Recession, the Federal Reserve had released $2 Trillion into the economy in a hope to stabilize it, but till date we are seeing very slow growth and performance.


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