Fox News
Expand
Browse All Video
Watch Live

You're watching...

Federal Reserve to take bold action to jumpstart economy

Details

  • Description

    Will new bond-buying plan work?

  • Duration 2:42
  • Date

Clips

Also in this playlist...

Latest US

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

But first the Federal Reserve is taking another very expensive shot at trying to jump start the ailing economy.

The Fed says it will try and keep trying until the job is done.

What does that -- say about the state of the recovery and what does it mean -- the election less than two months before Election Day.

Fox Business Network senior Washington correspondent Peter Barnes has the -- house.

-- Election Day just eight weeks away the Federal Reserve moved aggressively to make it cheaper for consumers and businesses to borrow more.

It wants people to buy more cars houses appliances and gadgets and companies to invest more in plant and equipment to boost economic growth.

And job creation.

This is a main street policy because what we're about here is trying to get.

Jobs going we're trying to create more employment the Fed has been frustrated with current slow economic growth stock at about 2%.

Not enough to get the unemployment rate stuck above 8% down faster.

It's also worried the fiscal cliff in Washington and the debt crisis in Europe could hurt the economy.

So would announce that in effect it will start printing money.

Again by buying forty billion dollars of bonds each month from banks and investors to flood the financial system -- even more cash.

We're not.

Promising.

You know cure to all these -- But what we can do is provide some support the Fed has done this twice before.

Buying two trillion dollars in bonds since 2008.

And claims the moves may have -- longer term interest rates by as much as a full percentage point.

It claims that may have added an extra 3% to economic growth and an extra two million jobs.

Sabres have complained -- earning next to nothing and critics worry the Fed's money printing may eventually lead to more inflation.

They also say lower rates won't help.

Job creation is largely a function of what.

Businesses think the future holds for them.

And they then expand to plant and equipment and respond to that view vision of the future that vision of the future is murky right now because of tax increases meltdown in Europe.

But any new economic Jews could help President Obama over Mitt Romney ahead of the election.

The Fed Chairman denied any political motives we've been successful at the Federal Reserve to be nonpartisan and a political we make our decisions.

Based entirely on.

The state of the economy and -- needs of the economy for policy accommodation.

Now if the new stimulus goes according to plan the Fed projects unemployment could hit about six and a half percent by -- 2815.

-- For the financial junkies out there this is QE3 quantitative easing the third round yes OK Peter thank you.

Load More