The Federal Reserve announced a new plan Wednesday to stimulate growth by purchasing $400 billion in long-term Treasury securities with proceeds from the sale of short-term government debt, defying Republican demands to refrain from new actions.
In extending its campaign of novel efforts to shake the economy from its torpor, the Fed said that it was responding to evidence that there is a clear need for help. ......Economists project that the effort could reduce interest rates by a few tenths of a percentage point, a significant increment when multiplied by the vast extent of borrowing. The forecasting firm Macroeconomic Advisers estimated in advance of the Fed’s announcement – based on its best guess about the details of such a program – that the Fed’s efforts could add about 0.4 percentage points to economic output and create about 350,000 jobs. ...NYT
Sheesh! 350,000 jobs? No wonder the Republicans tried to stop this.
