Fed minutes suggest new bond-buying plan likely

WASHINGTON — The Federal Reserve is signaling that it will likely launch a new bond buying program in December to try to spur job growth.

The purchases would be intended to lower long-term borrowing rates to encourage spending and strengthen the economy. The hope is that more hiring would follow.

Minutes of its Oct. 23-24 policy meeting suggest that the Fed will unveil a Treasury-buying plan to replace a program that expires at year’s end. Under the existing program, the Fed has been selling short-term Treasurys and using the proceeds to buy an equal amount of longer-term securities.

When this program ends, the Fed will run out of short-term investments to sell. The minutes suggest that when they meet next month, officials will replace it with another program to buy long-term bonds.