Cloudy

50°F

Shelton, WA

Cloudy
Humidity: 86%
  • 1

Federal Reserve to Announce Reduction in Stimulus Program?

b_250_0_16777215_00_images_obgrabber_2013-09_25ca8b007e.jpgMark Wilson/Getty Images(WASHINGTON) -- The Federal Reserve on Wednesday is expected to make its first move toward slowing the economic stimulus that's been flowing since the financial crisis started five years ago. Following the Great Recession, the Fed implemented a bond-buying program to help give a lift to the economy.  The move kept interest rates as low as possible.

"The Federal Reserve came out and started buying mortgage-backed securities so as to give some sort of help in the housing market," Joe Deaux, an economics analyst for TheStreet.com, explains.

But that may all change on Wednesday, when economists predict the Fed will announce a new money policy.

"I think you're going to finally see some sort of drawdown -- how much, it's difficult to say," Deaux says.

He adds, "There are a number of people, including [Federal Reserve] Chairman Ben Bernanke, who've said, you know, at some point we do need to draw down these purchases, and -- and I think even the more dovish people will tell you that eventually yes, the Fed does have to do that."

Copyright 2013 ABC News Radio

  1. Environment
  2. Recreation

Tweets

Mariners
Mariners - The #Mariners have selected OF Cole Gillespie from Tacoma. Nick Franklin (Tacoma) and Erasmo Ramirez (High Desert) optioned post-game yest.

3 minutes ago

westgov
westgov - See resolutions approved by Western Govs on water, mining reclamation, WIPP Land withdrawal & more. ow.ly/w7Yta

4 minutes ago

washdems
washdems - Congratulations @matt_isenhower on your successful kickoff for State Senate! ow.ly/w81jX #waleg

6 minutes ago

nfl
nfl - .@Packers. @Seahawks. 133 days... #Kickoff2014 Here's something to hold you over: on.nfl.com/1k9Aq5s

Retweeted 9 minutes ago

Public Notices