Thursday, March 19, 2009

Federal Reserve's Plan to Revive US Economy

Federal Reserve initiated a brave and smart plan of $1.8 trillion to revive the damaged economy. According to the plan, Federal Reserve will spend maximum $300 billion to buy long-term government bonds and additional $750 billion in mortgage blocked securities.

At the same time, The Federal Chairman Ben Bernanke also set the short term bank lending rate within the range of 0-0.25%. Economists expects the new rate for lending will be carried for this whole year.

The lending rate revision is well expected for everybody but the additional $1.82 trillion plan is the total surprising for all. 

Based on the Federal plan, all the major stock markets experiencing positive movement for maximum indicators

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