Fed pulls trigger on more economic stimulus

Expect a lot of gentle reassurances from the Fed this week. U.S. Federal Reserve Chairman Ben Bernanke and his team will make a rate announcement on Wednesday and provide their latest insight into the health of the U.S. economy. Investors will be watching closely for any hints of whether the Fed will ease its US$80-billion a month bond buying program, also known as QE3.

WASHINGTON — Federal Reserve policymakers are divided over when to end extraordinary measures intended to encourage more borrowing and spending to help stimulate the U.S. economy, according to minutes of the Fed’s last meeting released Wednesday. The minutes of the Fed’s March 19-20 meeting were released at 9 a.m. EDT — five hours earlier than planned — after the Fed inadvertently sent them a day earlier to congressional staffers and lobbyists.

WASHINGTON — Federal Reserve policymakers are divided over when to end extraordinary measures intended to encourage more borrowing and spending to help stimulate the U.S. economy, according to minutes of the Fed’s last meeting released Wednesday. The minutes of the Fed’s March 19-20 meeting were released at 9 a.m. EDT — five hours earlier than planned — after the Fed inadvertently sent them a day earlier to congressional staffers and lobbyists.

Harlan Levy submits:

WASHINGTON — The U.S. Federal Reserve stuck to its plan to buy US$85 billion in bonds each month to push down borrowing costs and prop up the economy, citing risks to growth from recent budget tightening in Washington. Describing the economy as expanding moderately in a statement that largely mirrored its March decision, Fed officials cited continued improvement in labor market conditions.

WASHINGTON — The Federal Reserve ramped up its stimulus to the economy on Wednesday, expressing disappointment with the pace of recovery in employment as contentious U.S. budget talks heighten uncertainty about the outlook. The central bank replaced a more modest stimulus program due to expire at year-end with a fresh round of Treasury purchases that will increase its balance sheet. It committed to monthly purchases of US$45-billion in Treasuries on top of the US$40-billion per month in mortgage-backed bonds it started buying in September.

WASHINGTON — The Federal Reserve on Wednesday pressed forward with its aggressive efforts to stimulate the U.S. economy through large-scale bond purchases, saying unemployment remains too high and citing “restrictive” fiscal policy. Meeting just as turmoil in Europe took another turn for the worse, the central bank removed a key section of its policy statement indicating financial conditions had eased.