Accessibility links

Breaking News

Fed May Reduce Efforts to Stimulate US Economy


A guard stands outside the Federal Reserve Building in Washington, January 14, 2010 (file photo)
A guard stands outside the Federal Reserve Building in Washington, January 14, 2010 (file photo)
Top officials of the U.S. central bank have been discussing when to end a program intended to stimulate the world's largest economy with a program of bond purchases -- with some saying the program should continue and others wanting to stop them.

The idea is to cut long-term interest rates and make it easier for businesses to buy equipment, build factories, and hire people.


Before the bond-buying program, the U.S. Federal Reserve had already cut short-term interest rates to nearly zero. The long-term program was added when ultra-low short term interest rates did not spur growth enough to quickly cut high unemployment.

At the Fed's most recent meeting in mid-December, some officials said the effort to cut long term interest rates should continue until the end of this year, while others suggested wrapping the effort up at mid-year. The Fed published the meeting notes Thursday.

Earlier Thursday, a report from the Labor Department said the number of people signing up for unemployment insurance rose slightly last week((by 10,000 to a nationwide total of 372,000.)) Economists watch jobless claims as a way of tracking weekly layoffs, which rose a bit during December.

Government experts are set to publish the monthly unemployment rate Friday. Economists surveyed by news agencies predict that the unemployment rate will hold steady at 7.7 percent.
  • 16x9 Image

    VOA News

    The Voice of America provides news and information in more than 40 languages to an estimated weekly audience of over 326 million people. Stories with the VOA News byline are the work of multiple VOA journalists and may contain information from wire service reports.

XS
SM
MD
LG