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Article posted: 9/13/2012 12:16 PM

Fed to spend $40B a month on bond purchases

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The Federal Reserve says it will spend $40 billion a month to buy mortgage-backed securities for long as necessary to stimulate the still-weak economy and reduce high unemployment.

Associated Press

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The Federal Reserve says it will spend $40 billion a month to buy mortgage-backed securities for long as necessary to stimulate the still-weak economy and reduce high unemployment. It also extended a plan to keep short-term interest rates at record lows through mid-2015. And it said it's ready to take other steps to boost the economy even after it strengthens.