Tuesday, October 05, 2010

Fed Chair: Government May Buy More Debt

Federal Reserve Chair Ben Bernanke hinted Monday that the Fed is likely to buy more government debt, a move that could further drive down rates on mortgages, corporate financing, and other loans.

"I do think the additional purchases, although we don't have the precise numbers for how big the effects are, I do think they have the ability to ease financial conditions," Bernanke said at a meeting with college students after his presentation at the Rhode Island Public Expenditure Council.

Bernanke also defended the TARP program, saying that the downturn would have been much worse without it.

Source: Reuters News (10/4/2010)

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