By Barry Grey
20 March 2009
The US Federal Reserve Board on Wednesday announced that it will massively expand its moves to pump liquidity into near-frozen credit markets, including a highly unusual plan to purchase up to $300 billion in longer-term Treasury securities over the next six months.
The plan also includes an additional $750 billion in Fed purchases of mortgage-backed securities guaranteed by the federally owned mortgage finance companies Fannie Mae and Freddie Mac and an additional $100 billion in Fed purchases of Fannie Mae and Freddie Mac debt. These measures came as a surprise to global financial markets and triggered a simultaneous rush to buy Treasury bonds and a sharp sell-off of US dollars on world currency markets.
US prints more money to fight recession – 20 Mar 09
The US central bank is resorting to a tool of last resort in its battle to fight the economic crisis: printing money more than $1 trillion.
Al Jazeera’s Nick Spicer explains how this move could affect the economy.
Vodpod videos no longer available.