Fed will spend $600B in lat­est bid to help econ­omy

The Covington News - - Local news -

WASHINGTON ( AP) — The Fed­eral Re­serve will sink $600 bil­lion into govern­ment bonds in a bold plan that it hopes will drive in­ter­est rates even lower than they al­ready are and start the chain re­ac­tion that fi­nally cre­ates jobs and in­vig­o­rates the econ­omy.

The Fed said Wed­nes­day that it would buy the bonds at a rate of about $75 bil­lion a month through the mid­dle of next year. The idea is to en­cour­age peo­ple to spend more money and stim­u­late hir­ing, both ways of ac­cel­er­at­ing eco­nomic growth.

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