FILE - In this Thursday, Oct. 18, 2012, file photo Pedestrians walk past the Federal Reserve Bank of New York in New York. The Federal Reserve is signaling that it will likely launch a new bond buying program in December to try to spur job growth. The purchases would be intended to lower long-term borrowing rates to encourage spending and strengthen the economy. The hope is that more hiring would follow. (AP Photo/Seth Wenig, File)
November 14, 2012 - 11:05 AM
WASHINGTON - The Federal Reserve is signalling that it will likely launch a new bond buying program in December to try to spur job growth.
The purchases would be intended to lower long-term borrowing rates to encourage spending and strengthen the economy. The hope is that more hiring would follow.
Minutes of its Oct. 23-24 policy meeting suggest that the Fed will unveil a Treasury-buying plan to replace a program that expires at year's end. Under the existing program, the Fed has been selling short-term Treasurys and using the proceeds to buy an equal amount of longer-term securities.
When this program ends, the Fed will run out of short-term investments to sell. The minutes suggest that when they meet next month, officials will replace it with another program to buy long-term bonds.
News from © The Associated Press, 2012