(Washington)-the fed is running option, to try to stimulate the weak economy and low unemployment. Therefore, policymakers is expected to be 50 years of the script, their next step.
Most economists expect the fed will announce a plan, to $1.7 trillion in its short-term securities portfolio into a long-held money.
The plan could further reduce the Treasury yields. Finally, it may also reduce mortgage loans, and other consumer and commercial loan interest rate.
Federal reserve chairman Ben bernanke is expected to move from the fed and advocating despite republican senator and presidential candidate criticism.
On Monday, four of the highest rank of republicans in congress to send bernanke letter, the fed could take further measures to cut interest rates. They in the letter suggested that lower interest rates could exacerbate the risk of high inflation.
The fed is considered to be the most likely (Wednesday) launched the program, called "operation twist" and the date of the early 1960 s. The fed used a similar scheme, then with "and" short-term interest rates relatively low long-term interest rates.
Expect the fed will do it again, and again another recession, leading investors worry about buying U.S. Treasury bonds. Treasury yields falling reaction.
Last week the yield on the 10-year Treasury note hit 1.87% of historically low. On Tuesday, complete slightly tall, 1.93%.
Once the fed announced last month that it will expand its September from one to two days of the meeting, most economists forecast, policymakers will introduce a new step. Federal reserve chairman Ben bernanke has said the fed is considering DuoZhong choice.
Under the pressure of the central bank, in order to revitalize the economy has more than two years since the recession officially ended with a limp. In the first half of this year, economic growth in annual rate is only 0.7%. In August of this year, the economy not added any work, consumer and did not increase their consumption of goods of retail.
Most economists expect annual growth of less than 2%. Many people say that another about the possibility of a recession in three.
The fed provides its own dim prospects. In the August meeting, it says the economy will may at least two years in the struggle. Therefore, it said it plans to keep short-term interest rates near historical lows, until the middle of 2013, as long as the economy remains weak.
Decide to do so, highlighted at the central bank crack. Nearly 20 years of three members don't agree with the fed's decision-the most against. Third, in all the federal reserve bank President said, the policy of the federal reserve, increased the risk of inflation.
Bernanke also faces from the congressional republicans and republican presidential candidate criticism. Some people think that the fed's $600 billion of bonds to buy plan, which ended in June, weaken the dollar against other currencies, the value and contribution in oil and commodity prices soaring.
Texas governor perry, who is seeking the republican nomination for President, said Mr Bernanke will "almost treason", roll out more bonds to buy.
Bernanke said the fed may consider another round of bond buying. It can also provide more specific about the future interest rate movements of the guidance.
Or, it can reduce the fed to pay its reserve bank in the central bank's interest of 0.25%. Doing so will reduce the incentive, keep in the fed's money, may make them easier to borrowing.
But many analysts expect the fed will choose the operation of other action twist.
President Obama has launched a $44.7 billion plan, the tax cuts and increase the combination of government spending. But it faces an uncertain fate in congress, republicans are concentrated in the effort to cut its budget deficit soaring.




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