“The Federal Reserve, frustrated by persistently high U.S. unemployment and the torpid recovery, launched an aggressive program to spur the economy through open-ended commitments to buy mortgage-backed securities and a promise to keep interest rates low for years.
In the most significant of its new moves, the Fed said Thursday it would buy $40 billion of mortgage-backed securities every month and would keep buying them until the job market improves, an unusually strong commitment by the central bank.
“We want to see more jobs,” Fed Chairman Ben Bernanke said at a news conference Thursday, explaining the rationale for the Fed’s actions. “We want to see lower unemployment. We want to see a stronger economy that can cause the improvement to be sustained.”
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