WASHINGTON (AP) — Is the Federal Reserve about to prescribe some new medicine for the U.S. economy?
Analysts awaiting the outcome of today's central bank meeting think it could announce a third round of bond purchases meant to ease long-term interest rates and spur borrowing and spending. It's been called "quantitative easing," or QE.
Others predict a more measured response saying it might just extend the timetable for any rise in record-low short-term rates beyond the current target of late 2014 at the earliest.
Fed officials began their discussions yesterday and will end with an announcement of any decision around midday. Later, Chairman Ben Bernanke will hold his quarterly news conference.
The Fed is facing pressure to act now because the U.S. economy is still growing too slowly to reduce high unemployment.
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%@AP Links
067-a-18-(John Silvia, chief economist, Wells Fargo Securities, in AP interview)-"scale asset purchases"-Economist John Silvia says there are many steps the Fed might take. (13 Sep 2012)
<<CUT *067 (09/13/12)>> 00:18 "scale asset purchases"
069-a-14-(John Silvia, chief economist, Wells Fargo Securities, in AP interview)-"of fiscal policy"-Economist John Silvia says interest rates aren't the problem. (13 Sep 2012)
<<CUT *069 (09/13/12)>> 00:14 "of fiscal policy"
068-a-16-(John Silvia, chief economist, Wells Fargo Securities, in AP interview)-"mortgage backed securities"-Economist John Silvia says the Fed will likely expand its large scale asset purchases. (13 Sep 2012)
<<CUT *068 (09/13/12)>> 00:16 "mortgage backed securities"
070-a-17-(David Wyss (WEES), professor, Brown University, in AP interview)-"already pretty low"-Brown University professor David Wyss says an expanded Fed program can only have so much benefit. (13 Sep 2012)
<<CUT *070 (09/13/12)>> 00:17 "already pretty low"
040-w-37-(Mark Hamrick, AP correspondent, with David Wyss, Brown University, and John Silvia, Wells Fargo Securities)--The Federal Reserve may announce new steps today aimed at helping the U.S. economy. The AP's Mark Hamrick reports the actual benefit is a big question. (13 Sep 2012)
<<CUT *040 (09/13/12)>> 00:37
071-a-07-(David Wyss (WEES), professor, Brown University, in AP interview)-"that string already"-Brown University professor David Wyss says the Fed only can do so much. (13 Sep 2012)
<<CUT *071 (09/13/12)>> 00:07 "that string already"
