Fed Set for New Round of Stimulus: Report
WASHINGTON (TheStreet) -- The Federal Reserve is close to embarking on another round of monetary stimulus next week, the Wall Street Journal reports.
The Fed is likely to unveil a program of U.S. Treasury bond purchases worth a few hundred billion dollars over several months, in contrast to purchases of almost $2 trillion it unveiled during the financial crisis, according to the newspaper.
The Fed is expected to make the announcement when the two-day meeting of its policy-making committee ends next Wednesday.
Reuters reports that market expectations have centered around an initial commitment to buy at least $500 billion in Treasury debt over five months in an effort to spur lending and more investment.Fed Chairman Ben Bernanke is expected to unveil the measures despite skepticism among some of his colleagues, including Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, who said earlier this week that more monetary easing was a "bargain with the devil," the Journal reports. -- Written by Joseph Woelfel
>To contact the writer of this article, click here: Joseph Woelfel >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV