This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Fed's Moves To Aid Economy Since Financial Crisis

The Associated Press

WASHINGTON (AP) â¿¿ The Federal Reserve has taken many unprecedented steps in the past four years to try to boost the U.S. economy and counter the effects of a financial crisis that triggered a painful recession. It has kept the short-term interest rate it controls at a record low near zero since December 2008.

It's bought more than $2 trillion in U.S. Treasurys and mortgage bonds to try to hold down longer-term rates. Those purchases have increased the Fed's balance sheet to more than $2.8 trillion.

Some steps the Fed has taken:

â¿¿ Nov. 25, 2008: The Fed says it will buy $500 billion in mortgage bonds.

â¿¿ Dec. 15-16, 2008: The Fed creates a target range for interest rates and cuts its key federal funds rate to between zero and 0.25 percent. That's a record low. The Fed vows to use all the tools it has to rescue the economy from the worst financial crisis and recession since the 1930s.

â¿¿ Jan. 27-28-2009: The central bank signals it's prepared to buy longer-term Treasuries and expand other programs.

â¿¿ March 17-18, 2009: The Fed says it will start buying up to $300 billion in government bonds over six months. It also decides to boost purchases of Fannie Mae and Freddie Mac mortgage-backed securities and debt. The actions are aimed at driving down rates on mortgages and other debt.

â¿¿ Sept. 22-23, 2009: The Fed slows a mortgage-buying program to complete its purchases by March 31, 2010, instead of at the end of 2009.

â¿¿ Aug. 10, 2010: It decides to use some money generated by its mortgage portfolio to buy government debt, to try to lower rates on mortgages and other loans.

â¿¿ Aug. 27, 2010: In a speech in Jackson Hole, Wyoming, Chairman Ben Bernanke lists several options to boost the economy, including the purchase of additional government bonds.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs