Business

Careful Fed?
by Barbora Misakova

Life in the modern society can be pretty annoying, at least for me. Money dictates the world rules, if you have them you are safe if not…better not to say. Money is everywhere, in every single aspect of our lives, and I don’t know why, it is still more and more alarming. Every second head on this planet is thinking about the economy crisis, especially the guys from the Federal Reserve. The question their brains were harping on last months was whether to expand or cut back program intended to drive the mortgage rates down and so help the housing market to pull round. The decision was: slow down a little and wait till the end of March to buy mortgage securities fr! om Fannie Mae and Freddie Mac. Of course, not every head has the same vision. While some of the policymakers would rather increase the mortgage securities buying program, others were more for its reduction. Those optimistic ones see in the increase of buying program option how to help the economy recover more quickly. The other ones just think that increase is not necessary, as the economy is showing signs of picking up anyway. Central bank seems to be more careful not only in the field of purchasing (last month it slowed down purchases of $200 billion in debt from Fannie and Freddie) but also in lending. It held lending rate at a record low near zero. They will hold it for an “extended period” which means minimally till next year.

related story (sgx15627): http://news.yahoo.com/s/ap/20091014/ap_! on_bi_ge /us_fed_minut...

by Barbora Misakova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 1:08 PM