Summary Box: Fed more worried about economy, moves to buy gov’t debt
By APTuesday, August 10, 2010
Summary Box: Fed more worried about economy
DARKER VIEW: The Federal Reserve says the economic recovery is losing momentum, a more downbeat assessment than just two months ago.
HELPING HAND: The Fed said it would spend a relatively small amount of money buying government debt. That’s aimed at driving interest rates on mortgages and corporate borrowing a little lower and helping the economy grow faster.
NO SILVER BULLET: Economists doubt the Fed can boost economic growth and drive down unemployment on its own. Interest rates are already low and that hasn’t spurred a major spending wave.
YOUR VIEW POINT
