Financial 411: Fed to Continue Economic Stimulus
Tuesday, August 10, 2010
The Federal Reserve took action Tuesday, in an attempt to keep the economic recovery from slowing down any further.
The central bank announced it will stimulate economic growth by putting more money into the economy. It will do this by purchasing Treasury securities from the proceeds of its investments in mortgage-securities bonds.
The Fed also decided to keep a key interest rate at nearly zero.
Critics worry that the action may not be enough without additional stimulus from Congress.
WNYC's Amy Eddings talks to Greg McBride, Senior Financial analyst with Bankrate.com, about Tuesday's announcement and what it means for consumers.