Fed aims at boosting jobs with new QE3 programme
WASHINGTON (AFP) - The United States (US) Federal Reserve took aim at slow growth and high joblessness on Thursday, announcing a new, open-ended US$40 billion (S$49 billion) per month bond-buying program as it slashed its 2012 growth forecast.
The Fed said the new monetary easing effort to would remain in place until it sees substantial improvement in the US jobs market, where 8.1 per cent of Americans remain unemployed.
Doubling up on its message to banks, industry and consumers that holding their money unused would essentially cost them, the US central bank also pledged to keep its benchmark interest rate at ultra-low levels until at least mid-2015.
By then, it hopes, economic growth will have begun generating the jobs and spending levels necessary to be self-sustaining.