The Federal Reserve will buy an additional $600 billion in long-term Treasury bonds by the end of June 2011 -- about $75 billion per month -- in an effort to spur economic growth by lowering long-term interest rates.
The Fed also will continue its program, announced in August, of reinvesting proceeds from its mortgage-related holdings to buy Treasury debt. The central bank now expects to reinvest $250 billion to $300 billion under that program by the end of June, making the total asset purchases in the range of $850 billion to $900 billion.
