Bank Of Baku

US government to spent 600-billion dollar to stimulate economy

US government to spent 600-billion dollar to stimulate economy
# 04 November 2010 11:09 (UTC +04:00)
Baku - APA-Economics. The US Federal Reserve has announced a 600-billion dollar stimulus to revitalize the country’s economy.

The Fed stated that it will buy long-term government bonds worth 600-billion dollars by June, 2011 to drive down the historically low interest rates on mortgages and other forms of debt.

Officials say that the stimulus is designed to offer loans at a cheaper rate as well as increase consumer spending in order to avert deflation and boost employment.

This is the second stimulus of its kind following the previous 1.7-trillion dollar bond purchase by the Fed in 2009.


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