Fed’s $40 bn/month monetary policy for US economy stimulus

Fed Chairman Bernanke 150x150 Fed’s $40 bn/month monetary policy for US economy stimulusAmid announcement by the Federal Reserve over the launch of an aggressive stimulus plan as a monetary policy yesterday hit the US stock record and gold at a six-month high, seeking investors’ higher confidence to jump into market.

The Fed said it would invest $40 billion in each month into the U.S. economy by purchasing only mortgage-linked debt until the poor US employment rate not upheld, hoping to raise more hopes in household sector that would play massive role in US economy improvement.

“The employment situation … remains a grave concern. While the economy appears to be on a path of moderate recovery, it isn’t growing fast enough to make significant progress reducing the unemployment rate,” Fed Chairman Ben Bernanke told reporters.

Coordinate with much controversial buying bond, the central bank said it seek to lower the mortgage rates as well as opening ways for investors to invest other assets. Fed also said not to hike overnight interest rates until mid-2015, and also insisted to pursue an easy monetary policy after balancing economy position.

Meanwhile, analysts expected to have an upcoming biggest hike flow in the economy that would beneficial for housing sectors as well as industrial, raising more hopes to gaining more, a fastest growth in the market.

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