The Federal Reserve launched a new effort to boost the stock market and make borrowing cheaper.
Stock prices rocketed up in approval. But economists said the Fed's plans to buy mortgage bonds for as long as it deems necessary and to keep interest rates at record lows until mid-2015 — six months longer than previously planned — might provide little benefit to the economy.
Chairman Ben Bernanke himself cautioned that the Fed's actions are no panacea for slow growth and high unemployment, and said the economy will probably need help even after the recovery strengthens.
"The idea is to quicken the recovery," Bernanke said at a news conference after the Fed lowered its outlook for growth this year.
Read more at The Mail Tribune.