Fed to Keep Buying Bonds

Citing the slow pace of economic recovery and persistently high unemployment, the Federal Reserve on Jan. 26 unanimously decided to move forward with plans to purchase up to $600 billion in long-term Treasury bonds.

The central bank also reaffirmed its intent to keep short-term interests rates near zero for "an extended period." According to futures markets, investors believe the Fed will begin raising rates in the early part of next year.

Source: “Unanimous Fed Keeps Buying Bonds,” The Wall Street Journal, Sudeep Reddy (01/27/11)